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

question 177

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 costs are unavoidable. Darren Company drops product line F and rents the space formerly used to produce product F for $17,000 per year, what affect will this have on operating income?

• A) Increase $1,000
• B) Increase $17,000
• C) Decrease $1,000
• D) Decrease $16,000

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Definitions:

Role Analysis Technique

A method used in organizational development to identify, describe, and analyze the responsibilities and duties of a job role.

Job Rotation

Enlarging jobs by moving employees among several different jobs.

Exit Interviews

A survey or interview conducted with departing employees to gain insights into their experiences, reasons for leaving, and suggestions for improving the workplace.

Job Descriptive Indices

A validated survey instrument used to measure employees' satisfaction with various aspects of their jobs.