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

question 57

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. Assume that $8,000 of total fixed costs could be eliminated by dropping F. What effect would this decision have on operating income?

• A)Operating income will increase $3,000.
• B)Operating income will increase $15,000.
• C)Operating income will decrease $6,000.
• D)Operating income will decrease $3,000.

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Definitions:

Longitudinal Perspective

An approach that involves studying the same individuals over a period of time to observe changes and developments.

Independent Variable

The factor in an experiment that is intentionally altered to see its impact on the variable that is being measured.

Single-Subject Experimental Designs

Research designs that focus on the response of a single participant to document the effects of a variable.

Cross-Sectional

Describes research that collects data from a population or a representative subset at one specific point in time.