Iver Roller Skates Has Three Product Lines-D,E,and F The Company Is Deciding Whether to Drop Product Line F

question 143

Multiple Choice

Iver Roller Skates has three product lines-D,E,and F.The following information is available: $$\begin{array} { | l | c | c | c | } \hline & \text { D } & \text { E } & \text { F } \\\hline \text { Sales revenue } & \$ 80,000 & \$ 50,000 & \$ 30,000 \\\hline \text { Variable costs } & \$ ( 40,000 ) & ( 15,000 ) & ( 10,000 ) \\\hline \text { Contribution margin } & \$ 40,000 & \$ 35,000 & \$ 20,000 \\\hline \text { Fixed costs } & \$ 10,000 & \underline { ( 15,000 ) } & \underline { ( 25,000 ) } \\\hline \text { Operating income (loss) } & \$ 30,000 & \$ 20,000 & \$ ( 5,000 ) \\\hline\end{array}$$ The company is deciding whether to drop product line F because it has an operating loss.Assuming fixed costs are unavoidable,if Iver drops product line F and rents the space formerly used to produce product F for $17,000 per year,total income will be ________.

• A) $10,000
• B) $42,000
• C) $20,000
• D) $25,000

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Definitions:

Fractured Ribs

Breaks or cracks in the rib bones, often caused by trauma, which can result in pain, breathing difficulties, and a need for medical treatment.

Nursing Intervention

Actions taken by nurses to implement patient care plans, ranging from direct patient care to coordinating and monitoring the patient's condition.

Dressing Change

The act of removing an old wound covering and applying a new sterile dressing, which is crucial for preventing infection and promoting healing.

Plan Of Care

A detailed, prescribed healthcare strategy that addresses a patient's specific health issues.