The Internal Financial Statements of Pierce Solutions Show That Their

question 238

Multiple Choice

The internal financial statements of Pierce Solutions show that their product, LX90, incurred an operating loss in the most recent year. There were 20,000 units of LX90 sold in that year. Selected financial information about product LX90 follows.
If product LX90 were to be dropped, the company would avoid $16,000 in fixed costs per year.
If Pierce Solutions were to drop product LX90, the change in annual operating income would be a(n)

• A) decrease in total operating income of $26,000.
• B) decrease in total operating income of $44,000.
• C) increase in total operating income of $10,000.
• D) decrease in total operating income of $10,000.

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Definitions:

Freudian Slips

Unintentional errors in speech or memory believed to reveal subconscious thoughts or desires, according to Freudian psychoanalytic theory.

Expressive Behavior

Actions or emotional expressions that convey an individual's feelings or emotional state to others.

Cognitive Neuroscience

An academic field concerned with the scientific study of biological processes and aspects that underlie cognition, with a focus on the neural connections in the brain.

Expression of Emotions

The process by which individuals communicate their feelings to others through facial expressions, body language, and verbal cues.