ABC Corporation Makes Mattresses in Three Sizes: Twin,queen and King

question 157

Multiple Choice

ABC Corporation makes mattresses in three sizes: twin,queen and king.Twin mattresses have shown a loss for several years,similar to the operating loss shown below: None of the fixed cost is avoidable.What will total operating income for the corporation be if twin mattresses are discontinued?

• A)$50,000 loss
• B)$15,000 loss
• C)$30,000 profit
• D)$105,000 profit

---

Definitions:

Damaged Products

Items that have sustained harm affecting their value, functionality, or appearance, typically occurring during manufacturing, shipping, or storage.

AIDA Strategy

A marketing model that outlines the process of attracting customer attention, maintaining interest, creating a desire for the product, and inducing action or purchase.

Desire

Desire is a strong feeling of wanting or wishing for something to happen or to possess something, often driving motivation and action.

Organized Strategy

A systematically planned approach to achieve predetermined goals, focusing on order and structure.