A Company Has Two Different Products That Are Sold in Different

question 109

Multiple Choice

A company has two different products that are sold in different markets.Financial data are as follows:

Assume that fixed costs of $1,000 could be eliminated if Product B was dropped.Assume furthermore that dropping one product would not impact sales of the other.If Product B is dropped,what would be the impact on total operating income of the company?

• A)increases by $1,000
• B)increases by $1,300
• C)increases by $300
• D)increases by $2,200

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Definitions:

Predictors

Variables or factors that can be used to forecast or anticipate the outcomes or actions of an individual or system.

Criteria of Interest

The specific standards or metrics that are used to evaluate or judge something.

Self-Efficacy Syndrome

A belief in one's own ability to succeed in specific situations or accomplish a task, influencing one's approach to challenges and goals.

Turnover Costs

The expenses associated with the departure of an employee from an organization, including recruitment, training, and loss of productivity costs.