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.

Understand the classification and functions of different hormones.

Grasp the concept of drug addiction and the theories explaining addiction.

Recognize the factors influencing drug sensitivity and toxicity.

Identify the environmental and genetic factors contributing to drug abuse and addiction.