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

question 140

Multiple Choice

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

Accessibility Products Company is thinking of dropping model F because it is reporting an operating loss. All fixed expenses are unavoidable.
-Assuming Accessibility Products Company drops line F and is able to double the production and sales of model E without increasing fixed costs. What affect will this have on operating income?

• A) Increase $23,000
• B) Decrease $23,000
• C) Increase $7,000
• D) Decrease $7,000

---

Definitions:

Six-figure Accuracy

A term indicating a numerical value or calculation is precise up to six digits.

Simplify

To reduce complexity or make easier to comprehend, particularly by breaking down into fundamental elements.

Like Terms

Terms in algebraic expressions that have the same variables raised to the same power, only their coefficients are different.

Discount Formula

A mathematical formula used to determine the present value of a future amount or a series of future cash flows, factoring in a discount rate.