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

question 16

Multiple Choice

Use the information below to answer the following question(s) :
Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow:

-Assuming the Sporty line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $32,000 per year, how will operating income be affected?

• A) Increase $22,000
• B) Increase $174,000
• C) Decrease $22,000
• D) Increase $81,000

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Definitions:

Noise

In communication, unwanted or disruptive sounds that interfere with the reception of the message being sent.

Media Richness

The ability of a communication medium to effectively convey information and promote understanding.

Encoding

The process of converting information into a form that can be stored, processed, or transmitted, often used in the context of memory or data transfer.

Listening Skills

Refer to the ability to accurately receive and interpret messages in the communication process, crucial for effective interpersonal relations.