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

question 177

Multiple Choice

Use the information below to answer the following question(s) :
Darren Company has three product lines: D, E, and F. The following information is available:

-Darren Company is thinking of dropping product line F because it is reporting an operating loss. All fixed costs are unavoidable. Darren Company drops product line F and rents the space formerly used to produce product F for $17,000 per year, what affect will this have on operating income?

• A) Increase $1,000
• B) Increase $17,000
• C) Decrease $1,000
• D) Decrease $16,000

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Definitions:

Manipulation

Influencing or controlling someone's behavior or emotions in a deceptive or unscrupulous way, often for personal gain or advantage.

Antisocial Personality Disorder

A mental health disorder characterized by a disregard for other people's rights, often crossing the line and violating those rights.

Limit Setting

A behavioral technique or strategy where boundaries are established to manage actions and interactions effectively.