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

question 261

Multiple Choice

Use the information below to answer the following question(s) :
Darren Company has three product lines: D, E, and F. The following information is available:

-Darren Company is thinking of dropping product line F because it is reporting an operating loss. All fixed costs are unavoidable. Assume Darren Company is able to increase the revenues of product F to $30,000 with no change in volume of units sold and no change in variable costs or fixed costs. What affect will this have on operating income?

• A) Increase $2,000
• B) Increase $30,000
• C) Decrease $2,000
• D) Decrease $30,000

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Definitions:

Neutral Transfer

The phenomenon where previous learning does not significantly influence the learning of new skills or knowledge, neither aiding nor hindering it.

Job Site

The physical location where work is performed; this term is often used in the context of construction, trades, or manual labor occupations.

Transfer of Training

The effective application of skills, knowledge, or attitudes learned in a training context to the job environment.

Generalization of Knowledge

The ability to apply learned information, skills, or procedures to different situations or contexts beyond the original setting.