A Company Has Two Different Products That Are Sold in Different

question 52

Multiple Choice

A company has two different products that are sold in different markets.Financial data are as follows:
- Assume that fixed costs of $1,000 could be eliminated if product B was dropped.Assume furthermore 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 $1,000
• B)increases by$1,300
• C)increases by $300
• D)increases by $2,000

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Definitions:

Cognitive Development

Refers to the progression of thinking, problem solving, and decision-making abilities from infancy through adulthood.

Maturation

The process of development in which an individual matures or reaches physical or psychological maturity.

Cultural Factors

Elements, such as beliefs, practices, and norms, that shape and influence the behavior and attitudes of a group of people within a society.

Authoritarian

A style of leadership or governance that is characterized by strict obedience to authority at the expense of personal freedom.