Logan Corporation Is Considering a Eliminating a Department That Has

question 152

Multiple Choice

Logan Corporation is considering a eliminating a department that has incurred losses over the past several years.The department has a contribution margin of $32,000 per year.The fixed costs charged to the department total $37,000.$15,000 of the fixed costs is avoidable.If the department is eliminated,what would be the effect on the corporation's operating income?

• A) $17,000 decrease
• B) $37,000 decrease
• C) $15,000 increase
• D) $22,000 increase

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Definitions:

Stereotype Threat

The risk of confirming negative stereotypes about an individual's racial, ethnic, gender, or cultural group, which can impair performance in a variety of settings.

Stereotype Threat

The risk of confirming negative stereotypes about one's group, which can impair performance in various domains.

Analogical Representations

Mental representations that have some of the physical characteristics of objects; they are analogous to the objects.

Symbolic Representations

Abstract mental representations that consist of words or ideas.