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

question 29

Multiple Choice

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

Accessibility Products Company is thinking of dropping model F because it is reporting an operating loss. All fixed expenses are unavoidable.
-Assume Accessibility Products Company is able to increase the sale price of product F to $33,000 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 $29,000
• B) Increase $4,000
• C) Decrease $29,000
• D) Decrease $4,000

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Definitions:

Financial Loss

Occurs when the value of an asset decreases or expenses surpass income, leading to a negative financial outcome.

Exposures

Contact with potentially harmful physical, chemical, or biological agents, either inadvertently or in a controlled manner for scientific study.

Malpractice

A failure by a professional to provide services with the competently expected level of skill or care, resulting in harm or injury to a person.

Bad Practice

Actions or behaviors, especially in professional settings, that are considered incorrect, unethical, or detrimental to clients or the profession itself.