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:

Social Media

Digital platforms that facilitate the creation and sharing of information, ideas, and other forms of expression via virtual communities and networks.

Green Marketing

It involves companies promoting their products or services based on environmental factors or awareness, often highlighting the benefits to the natural world.

Social Equity

The fair and just distribution of societal resources, opportunities, and treatment across all social groups, eliminating discrimination and ensuring inclusivity.

Grocery Store Advertising

Promotional activities and techniques designed to attract customers and increase sales specifically within the retail grocery industry.