Aloa Company Has Three Product Lines: A,B and C

question 72

Multiple Choice

Aloa Company has three product lines: A,B and C.The following annual information is available: Assume Aloa Company drops Product C.Aloa Company then doubles the production and sales of Product B without increasing fixed costs.What will happen to operating income?

• A)increase $15,000
• B)increase $24,000
• C)increase $36,000
• D)increase $42,000

---

Definitions:

Wage Differential

The difference in wages between individuals or groups due to varying characteristics such as occupation, location, or skill level.

Same Work

Assignments or tasks that require equivalent effort, skills, and responsibility, usually discussed in contexts of fairness and compensation.

Employment Discrimination

Unfair treatment of employees based on race, gender, age, religion, national origin, disability, or other protected characteristics.

Economic Theory

Economic Theory encompasses the models and concepts that describe the behavior of economies, including principles guiding production, distribution, and consumption of goods and services.