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

question 158

Multiple Choice

Use the information below to answer the following question(s) :
The income statement for Champion Parts is divided by its two product lines, Part L2 and Part C6, as follows:

-If fixed costs remain unchanged and Champion Parts drops the Part C6 line, how will operating income change?

• A) Will decrease by $65,000
• B) Will increase by $65,000
• C) Will decrease by $10,000
• D) Will increase by $10,000

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Definitions:

Duration Variance

A measure used in project management to quantify the difference between the planned and actual duration of project activities.

PERT Analysis

Project Evaluation and Review Technique, a statistical tool used in project management designed to analyze and represent the tasks involved in completing a given project, incorporating time estimates for completing each task.

Critical Path

The most extended line of activities within a project's plan that requires punctual completion for the project to finalize on its expected completion date.

Project Scheduling

The process of allocating time to tasks in a project to ensure it is completed within the set timeline, often visualized through tools such as Gantt charts.