Momentum Rollerblades Has Three Product Lines-D,E,and F The Company Is Deciding Whether to Drop Product Line F

question 19

Multiple Choice

Momentum Rollerblades has three product lines-D,E,and F.The following information is available: $$\begin{array} { | l | l | r | r | } \hline & { \text { D } } & \text { E } & \text { F } \\\hline \text { Sales revenue } & \$ 70,000 & \$ 40,000 & \$ 31,000 \\\\\hline \text { Variable costs } & \underline { ( 20,000 } & \underline { ( 5000 } ) & \underline { ( 11,000 } ) \\\\\hline \text { Contribution margin } & \$ 50,000 & \$ 35,000 & \$ 20,000 \\\\\hline \text { Fixed costs } & \underline { ( 10,000 } & \underline { ( 15,000 } ) & \underline { ( 24,000 } ) \\\\\hline \text { Operating income (loss) } & \underline { \$ 40,000} & \underline { \$ 20,000} & \underline { \$ ( 4000 ) } \\\\\hline\end{array}$$ The company is deciding whether to drop product line F because it has an operating loss.Assume that $22,000 of total fixed costs could be eliminated by dropping F.What effect would this decision have on operating income?

• A)Operating income will increase by $24,000.
• B)Operating income will increase by $2000.
• C)Operating income will decrease by $24,000.
• D)Operating income will decrease by $2000.

Know the first aid measures for dislocations and the importance of immobilization.

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Identify the concepts and terminology related to psychopathology and personality disorders.

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Definitions:

Cocaine Addiction

A chronic, relapsing disease characterized by a compulsion to seek and use cocaine, despite detrimental consequences.

Spine Density

Refers to the number of dendritic spines (small protrusions on dendrites where synapses are located) per unit length of dendrite, indicating the potential for synaptic connectivity.

Prefrontal Cortex

The frontal part of the frontal lobe of the brain, involved in complex behaviors including planning, decision making, and moderating social behavior.

Behavioral Sensitization

Escalating behavioral response to the repeated administration of a psychomotor stimulant such as amphetamine, cocaine, or nicotine; also called drug-induced behavioral sensitization.