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

question 4

Multiple Choice

Use the information below to answer the following question(s) :
The income statement for Champion Parts is divided by its two product lines, Part L2 and Part C6, as follows:

-If Champion Parts can eliminate fixed costs of $40,000 by dropping the Part C6 line, then dropping it should result in which of the following?

• A) Increase in total operating income of $25,000
• B) Increase in total operating income of $65,000
• C) Decrease in total operating income of $65,000
• D) Decrease in total operating income of $25,000

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Definitions:

Generativity

A concern for establishing and guiding the next generation, often expressed through parenting, teaching, and mentoring, and considered a stage of psychosocial development.

Havighurst's Vision

A theory proposing that successful aging involves maintaining interests, activities, and adapting to social and biological changes.

Normalcy

The condition of being normal; the state of being usual, typical, or expected.

Developmental Task

A learning task that is typical at a certain stage in life, which an individual must successfully complete for optimal development.