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

question 29

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.
-Assume Accessibility Products Company is able to increase the sale price of product F to $33,000 with no change in volume of units sold and no change in variable costs or fixed costs. What affect will this have on operating income?

• A) Increase $29,000
• B) Increase $4,000
• C) Decrease $29,000
• D) Decrease $4,000

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Definitions:

Opportunity

A set of circumstances that makes it possible to do something or for something to happen.

Right Choice

Refers to making a decision that best suits one's needs, goals, values, or circumstances, often after careful consideration.

Attend College

The act of enrolling in and participating in courses at a college or university.

Purpose

The reason for which something is done or created, or the reason for an object's existence.