Castillo Corporation Has Provided You with the Following Budgeted Income

question 29

Multiple Choice

Castillo Corporation has provided you with the following budgeted income statement for one of its products: $$\begin{array} { | l | r | } \hline \text { Sales revenue } & \$ 700,000 \\\hline \text { Variable costs } & ( 430,000 ) \\\hline \text { Contribution margin } & \$ 270,000 \\\hline \text { Fixed costs } & \underline { ( 320,000 ) } \\\hline \text { Operating loss } & \$ ( 50,000 \\\hline\end{array}$$ Castillo has just encountered environmental problems with the product and will be forced to drop the product line altogether.Castillo will be able to eliminate 60% of the fixed costs.What will be the impact on operating income of the company?

• A) Operating income will decrease by $192,000.
• B) Operating income will decrease by $78,000.
• C) Operating income will increase by $192,000.
• D) Operating income will increase by $78,000.

Recognize the legal and psychological aspects of rape and child sexual abuse.

Understand and identify stereotypes related to gender.

Define and explain the concept of sexual identity.

Understand the implications of testing HIV positive.

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Definitions:

Common Stock

The most usual type of corporate stock. It carries with it all the risks of the business and does not guarantee its holder the right to profits.

Capital upon Dissolution

The remaining assets available for distribution to the shareholders or partners after a firm's liabilities have been settled during dissolution.

Limited Liability

The legal principle where an individual's financial risk is restricted to a fixed amount, typically the value of their investment in a company, protecting personal assets from business debts and obligations.