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

question 202

Multiple Choice

Use the information below to answer the following question(s) :
The income statement for Champion Parts is divided by its two product lines, Part L2 and Part C6, as follows:

-If Champion Parts can eliminate fixed costs of $40,000 and increase the sale of Part L2 by 3,000 units at a selling price of $30 per unit and a contribution margin of $4 per unit, then dropping the Part C6 should result in which of the following?

• A) Increase in total operating income of $13,000
• B) Increase in total operating income of $53,000
• C) Decrease in total operating income of $13,000
• D) Decrease in total operating income of $53,000

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Definitions:

Romantic Partners

Individuals engaged in a romantic relationship, characterized by emotional and often physical intimacy.

Levels of Fascination

Describes varying degrees of interest or intrigue by subjects or concepts, often ranging from mild curiosity to deep obsession.

Ambivalent Attachments

A type of insecure attachment where an individual has mixed feelings about close relationships, seeking both closeness and independence.