The Managers of Adamson Apple Ltd

question 37

Multiple Choice

The managers of Adamson Apple Ltd. are considering dropping one of their product lines. The product line typically has the following revenue and costs: If the product line is discontinued, $4,000 of the fixed costs would be avoided. Also, the freed-up capacity would generate $4,000 of additional contribution margin from the expansion of other product lines. If Adamson discontinues the product line, the effect on overall profit will be

• A) $12,000 decrease
• B) $8,000 decrease
• C) $9,000 increase
• D) $3,000 increase

Identify the effects of contract provisions on the assignment and delegation under the UCC.

Explain the formation and rights of a third-party beneficiary in a contract.

Recognize the limitations on the ability to delegate duties and assign rights.

Understand the implications of assignments that increase risk or burden.

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Definitions:

Self-Report Measure

A type of psychological test or questionnaire where individuals provide responses about themselves, often concerning behaviors, thoughts, or feelings.

Small Positive Correlation

A statistical relationship indicating a slight increase in one variable is associated with a slight increase in another variable.

Likert Scale

A range of numbers that correspond to how much someone agrees or disagrees with an item.

Positive Correlation

A relationship between two variables where an increase in one variable is associated with an increase in the other.