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

question 202

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 and increase the sale of Part L2 by 3,000 units at a selling price of $30 per unit and a contribution margin of $4 per unit, then dropping the Part C6 should result in which of the following?

• A) Increase in total operating income of $13,000
• B) Increase in total operating income of $53,000
• C) Decrease in total operating income of $13,000
• D) Decrease in total operating income of $53,000

Know the components of a good health insurance plan.

Understand the significance of maintaining good health to manage medical costs.

Identify the mechanisms of cost-sharing in health insurance policies (deductibles, coinsurance).

Understand government health insurance programs (Medicare, Medicaid) and their coverage.

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Definitions:

Individual Firm Level

The perspective of analyzing or considering operations, strategies, or impacts at the scale of a single organization, excluding sectoral or macroeconomic factors.

Suppliers Concentrated

A market condition where a small number of suppliers provide a large portion of products or services.

Switching Costs

Expenses that a consumer or company incurs as a result of changing from one product, service, supplier, or system to another.

Supplier Power

The level of control and influence that suppliers have over the price and availability of their products or services in the market.