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

question 231

Multiple Choice

Use the information below to answer the following question(s) :
Pottery Unlimited has two product lines: cups and pitchers. Income statement data for the most recent year follow:

-Assuming the Pitcher line at Pottery Unlimited is dropped, total fixed costs remain unchanged, and the space formerly used to produce the Pitcher line is used to double the production of Cups, how will operating income be affected?

• A) Increase $150,000
• B) Increase $45,000
• C) Increase $74,000
• D) Decrease $45,000

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Definitions:

Leaderful Organization

An organizational concept where leadership is distributed amongst members rather than centered on a single leader, promoting collective decision-making and empowerment.

Formal Authority

The power granted to an individual due to their role or position within an organization, enabling them to make decisions and command others.

Shared Leadership

A team management approach where leadership roles and responsibilities are distributed among members, rather than centered on a single leader, to leverage the diverse skills and perspectives of the team.

Traditional Leadership

Involves leadership styles and practices that are established and have been used historically, often emphasizing hierarchy and control.