Sherman Hats,Inc

question 87

Multiple Choice

Sherman Hats,Inc.has two product lines-batting helmets and football helmets.The income statement data for the most recent year is as follows:

Assuming the football helmets line is dropped,total fixed costs remain unchanged,and the space formerly used to produce the line is rented for $120,000 per year,how will operating income be affected?

• A)Operating income will increase by $70,000.
• B)Operating income will increase by $50,000.
• C)Operating income will decrease by $50,000.
• D)Operating income will decrease by $70,000.

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Definitions:

Negative Bias

The tendency to focus more on negative information or experiences than positive ones.

Neurotransmitters

Chemicals that transmit signals across a synapse from one neuron to another 'target' neuron in the nervous system.

Inhibitory Role

The function of certain processes or substances in slowing down or stopping the activity of neural or biochemical pathways.

GABA

GABA, or Gamma-Aminobutyric Acid, is a neurotransmitter in the brain that plays a key role in regulating neuronal excitability and is involved in inducing relaxation and sleep.