A Company Has Two Different Products That Are Sold in Different

question 31

Multiple Choice

A company has two different products that are sold in different markets.Financial data are as follows:
- Assume that fixed costs are all unavoidable and that dropping one product would not impact sales of the other.If Product B is dropped,what would be the impact on total operating income of the company?

• A)increases by $2,000
• B)increases by $300
• C)decreases by $2,000
• D)decreases by $300

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Definitions:

Overall Functioning

An individual's general level of performance in various areas of life, often considered in psychological and medical contexts to assess health or disability.

Personality Disorders

Mental disorders characterized by enduring maladaptive patterns of behavior, cognition, and inner experience, exhibited across many contexts and deviating from those accepted by the individual's culture.

Axis II

A classification within the Diagnostic and Statistical Manual of Mental Disorders (DSM) that deals with personality disorders and mental retardation.

Adjustment Disorder

A type of mental disorder resulting from maladaptive reactions to identifiable stressors, characterized by emotional and behavioral symptoms.