Use the Information Below to Answer the Following Question(s)

question 231

Multiple Choice

Use the information below to answer the following question(s) :
Pottery Unlimited has two product lines: cups and pitchers. Income statement data for the most recent year follow:

-Assuming the Pitcher line at Pottery Unlimited is dropped, total fixed costs remain unchanged, and the space formerly used to produce the Pitcher line is used to double the production of Cups, how will operating income be affected?

• A) Increase $150,000
• B) Increase $45,000
• C) Increase $74,000
• D) Decrease $45,000

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Definitions:

Acorn Worms

Marine invertebrates in the phylum Hemichordata, known for their burrowing habits and acorn-shaped proboscis, playing a vital role in marine ecosystems.

Species Diversity

The variety of species within a region or ecosystem, encompassing species richness and the complexity of their interactions.

Asteroidea

A class within the phylum Echinodermata, commonly known as starfish or sea stars, characterized by their star-shaped body plan.

Holothuroidea

Holothuroidea, commonly known as sea cucumbers, are echinoderms with elongated bodies and leathery skin, representing a major group of the phylum Echinodermata.