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

question 193

Multiple Choice

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

-Darren Company is thinking of dropping product line F because it is reporting an operating loss. All fixed expenses are unavoidable. Assuming Darren Company drops product line F and does not replace it, what affect will this have on operating income?

• A) Increase $16,000
• B) Decrease $16,000
• C) Increase $1,000
• D) Decrease $1,000

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Definitions:

Box

A cloud storage and collaboration platform that allows users to store, share, and access files online.

Lookup

The action or process of searching for information or data in a database, spreadsheet, or another digital environment.

Combo Boxes

A graphical user interface element that combines a drop-down box with a text box, allowing the user to select an item from a list or type a value.

Option Group

A collection of options presented in user interfaces, where the user can select one (or sometimes multiple) options from the group.