Macaulay Roller Skates Company Has Three Product Lines-D,E,and F

question 93

Multiple Choice

Macaulay Roller Skates Company has three product lines-D,E,and F.The following information is available:
- The company is thinking of dropping product line F because it is reporting an operating loss.Assume that $15,000 of total fixed costs could be eliminated by dropping F.What effect would this decision have on operating income?

• A)Operating income will increase by $25,000.
• B)Operating income will increase by $20,000.
• C)Operating income will decrease by $5,000.
• D)Operating income will decrease by $15,000.

---

Definitions:

Motivate Followers

Motivating followers involves inspiring and encouraging individuals or teams to achieve their goals and perform at their best through various methods, including recognition, rewards, and personal development opportunities.

Empirical Research

A research approach based on observation and experimentation as opposed to theories or beliefs.

Expectancy Theory

Posits that an individual's motivation is affected by the expectation that effort will lead to performance and performance to desired outcomes.

Complex Tasks

involves assignments or projects that require a high level of cognitive effort and skill, characterized by multiple variables and potential outcomes.