Zephyr Energies,Inc

question 34

Multiple Choice

Zephyr Energies,Inc.is considering eliminating one of its product lines.The fixed costs currently allocated to the product line will be allocated to other product lines upon discontinuance.What financial effects occur if the product line is discontinued?

• A) net income will decrease by the amount of the contribution margin of the product line being discontinued
• B) the company's total fixed costs will increase by the amount of the contribution margin of the product line being discontinued
• C) the company's total fixed costs will decrease by the amount of the product line's fixed costs
• D) net income will decrease by the amount of the product line's fixed costs

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Definitions:

Intention Tremor

A rhythmic, oscillatory movement disorder that worsens with targeted movement or when approaching a precise task, often linked to disorders of the cerebellum.

Muscle Tone

The continuous and passive partial contraction of the muscles, which helps maintain posture.

Comparator

In general terms, a device or system that compares two items or signals and determines their relationship or difference.

Intended Movements

Movements that are planned or decided upon before they are executed, involving cognitive processes.