Black Productions Has Three Models: D,E,and F

question 232

Multiple Choice

Black Productions has three models: D,E,and F.The following information is available:

Black Productions is thinking of discontinuing model F because it is reporting an operating loss.All fixed costs are unavoidable.Black Productions discontinues model F and rents the space formerly used to produce product F for $15,000 per year,what effect will this have on operating income?

• A)Increase $21,000
• B)Increase $5,000
• C)Decrease $21,000
• D)Decrease $5,000

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Definitions:

E. coli

A common bacterium found in the intestines of humans and animals that can cause food poisoning when consumed in contaminated food.

Microbes

Tiny, single-celled organisms, including bacteria, viruses, fungi, and protozoa, that can exist in a variety of environments.

Archae

A domain of single-celled microorganisms that are genetically distinct from bacteria and eukaryotes, often living in extreme environments.

Protists

Eukaryotic organisms that are not animals, plants, or fungi, often found in moist or aquatic environments.