A Company Has Two Different Products That Are Sold in Different

question 119

Multiple Choice

A company has two different products that are sold in different markets. Financial data are as follows: Assume that fixed costs of $1,000 could be eliminated if product B was dropped. Assume furthermore that dropping one product would not impact sales of the other. If Product B is dropped, what would be the impact on total operating income of the company?

• A)increase $1,000
• B)increase $1,300
• C)increase $300
• D)increase $2,000

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Definitions:

Actor-observer Bias

The tendency to attribute one's own actions to external factors while attributing others' actions to their internal characteristics.

Situational Influences

External factors present in an individual's environment that impact behavior, decisions, and perceptions.

Situational Factors

Refers to external influences that affect an individual's behavior, decision-making, and ability to perform in various situations.

Actor

A person who performs in plays, movies, or television shows.