ABC Company Has Three Products That Use Common Facilities

question 161

Multiple Choice

ABC Company has three products that use common facilities.The relevant data concerning these three products follows:

Fixed costs are allocated common costs.If product line C is dropped,what will be the impact on operating profits?

• A)Operating loss will decrease to ($15,000).
• B)Operating loss will decrease to ($5,000).
• C)Operating loss will increase to ($35,000).
• D)There would be no change in operating profits.

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Definitions:

Months

Units of time based on the Earth's orbit around the Sun, typically totalling twelve in a calendar year.

Spatial Relations

The concept that deals with the understanding of how objects or points are located in space in relation to one another.

Visually Related Concept

An idea or information that is primarily understood or learned through visual representation and perception.

Blind

typically used in experimental design, refers to participants or researchers not being aware of certain crucial aspects of the study to prevent bias.