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

question 198

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Percy Productions has three models: D, E, and F. The following information is available: Percy Productions has three models: D, E, and F. The following information is available:   Percy Productions is thinking of discontinuing model F because it is reporting an operating loss. All fixed costs are unavoidable. Assume Percy Productions is able to increase the sales revenue of product F to $32,000 with no change in volume of units sold and no change in variable costs or fixed costs. What effect will this have on operating income? A) Increase $11,000 B) Increase $24,000 C) Decrease $11,000 D) Decrease $24,000 Percy Productions is thinking of discontinuing model F because it is reporting an operating loss. All fixed costs are unavoidable. Assume Percy Productions is able to increase the sales revenue of product F to $32,000 with no change in volume of units sold and no change in variable costs or fixed costs. What effect will this have on operating income?


Definitions:

Labor Data for Tajnia

Statistical information related to the workforce, employment trends, and economic conditions within Tajnia.

Adults Employed

The portion of the adult population that is currently employed and working.

Adults Unemployed

Individuals who are of working age, not currently employed, and actively seeking employment but unable to find work.

Adults Not in the Labor Force

Individuals over the age of working who are neither employed nor actively seeking employment, excluding them from labor force statistics.

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