Sarandon Company Has the Following Information Pertaining to Its Two

question 2

Multiple Choice

Sarandon Company has the following information pertaining to its two divisions for 2014: Common expenses are $12,000 for 2014.
What is the operating income for Sarandon Company?

• A) $300,000
• B) $32,500
• C) $150,000
• D) $20,500

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Definitions:

Relationship Satisfaction

The degree to which individuals feel fulfilled and content within their romantic, familial, or platonic relationships.

Constant

A situation or state of affairs that does not change.

Investment Model

Theory that uses three factors—satisfaction, alternatives, and investments—to explain why people stay with their long-term relationship partners.

Sunk Costs

Costs that have already been incurred and cannot be recovered, which should not influence future decisions but often do.