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

question 16

Multiple Choice

Use the information below to answer the following question(s) :
Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow:

-Assuming the Sporty line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $32,000 per year, how will operating income be affected?

• A) Increase $22,000
• B) Increase $174,000
• C) Decrease $22,000
• D) Increase $81,000

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Definitions:

Hypersexual Disorder

A proposed disorder characterized by excessive preoccupation with sexual fantasies, urges, or behaviors that is not currently recognized in the main diagnostic manuals.

Diagnosis

The process of identifying and naming a disease or condition based on its symptoms and test results.

Frotteurism

A paraphilic interest focusing on touching or rubbing against a non-consenting person, typically in crowded places.

Paraphilias

Paraphilias are sexual interests in objects, situations, or individuals that are highly atypical, leading to significant distress or impairment.