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

question 140

Multiple Choice

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

Accessibility Products Company is thinking of dropping model F because it is reporting an operating loss. All fixed expenses are unavoidable.
-Assuming Accessibility Products Company drops line F and is able to double the production and sales of model E without increasing fixed costs. What affect will this have on operating income?

• A) Increase $23,000
• B) Decrease $23,000
• C) Increase $7,000
• D) Decrease $7,000

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Definitions:

Paraplegia

A condition involving the partial or total loss of motor function in the lower half of the body, typically resulting from injury or disease of the spinal cord.

Quadriplegia

Paralysis of all four limbs, typically resulting from injury or illness affecting the spinal cord.

Hemiparesis

Weakness or partial paralysis affecting one side of the body.

Amyotrophic Lateral Sclerosis

A progressive neurodegenerative disease that affects nerve cells in the brain and the spinal cord, leading to muscle weakness and atrophy.