Use the Information Below to Answer the Following Question(s)

question 39

Multiple Choice

Use the information below to answer the following question(s) :
Pottery Unlimited has two product lines: cups and pitchers. Income statement data for the most recent year follow:

-Assuming the Pitcher line at Pottery Unlimited is dropped, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $45,000 per year, how will operating income be affected?

• A) Decrease $15,000
• B) Increase $45,000
• C) Increase $44,000
• D) Increase $15,000

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Definitions:

Behaviorist

A proponent of the psychological approach focusing on observable behaviors and the ways in which they're learned, rather than on cognitive or emotional processes.

Piagetian

Piagetian relates to the theories of cognitive development proposed by Swiss psychologist Jean Piaget, focusing on how children develop intellectual abilities.

Psychometric

Relates to the science of measuring mental capacities and processes.

Information-processing Abilities

Refers to the cognitive capacities to perceive, analyze, and manipulate information efficiently and effectively.