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

question 34

Multiple Choice

Use the information below to answer the following question(s) :
Aqua Life Jackets, Inc. has two product lines: adult jackets and children's jackets. Contribution margin income statement data for the most recent year follow:

-Assuming total fixed costs at Aqua Life Jackets, Inc. remain unchanged, how would dropping the children's jackets line affect operating income?

• A) Increase in total operating income of $8,000
• B) Increase in total operating income of $2,000
• C) Decrease in total operating income of $50,000
• D) Decrease in total operating income of $90,000

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Definitions:

Automated

Systems or processes operated with minimal or no human intervention, often using electronic devices or software.

Enteral Nutrition

The process of providing nutritionally complete feed directly into the stomach or intestines via a tube, when oral intake is not adequate.

Home-Bound Patient

An individual whose health conditions limit their ability to leave their home for medical care or personal needs.

Intravenous Therapy

Medical treatment involving the delivery of fluids, medications, or nutrients directly into a vein.