Shine Bright Company Has Three Product Lines-D, E, and F

question 116

Multiple Choice

Shine Bright Company has three product lines-D, E, and F. The following information is available: Shine Bright Company is thinking of dropping product line F because it is reporting an operating loss. Assuming fixed costs are unavoidable, if Shine Bright Company drops product line F and does not replace it, what effect will this have on operating income?

• A)Operating income will increase $2,000.
• B)Operating income will increase $14,000.
• C)Operating income will increase $16,000.
• D)Operating income will decrease $14,000.

---

Definitions:

Modern Medicine

A branch of medicine which is based on science, that uses the latest technology and practices for the diagnosis, treatment, and prevention of disease.

Emphasis

Special importance, value, or prominence given to something.

Non-Hispanic Whites

Individuals residing in the United States who are of European descent and do not identify themselves as Hispanic or Latino.

Native Americans

Indigenous peoples of the United States, including both American Indian and Alaska Native groups.