The Management of Freshwater Corporation Is Considering Dropping Product C11B

question 43

Multiple Choice

The management of Freshwater Corporation is considering dropping product C11B. Data from the company's accounting system appear below: All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $211,000 of the fixed manufacturing expenses and $122,000 of the fixed selling and administrative expenses are avoidable if product C11B is discontinued.
-According to the company's accounting system,what is the net operating income earned by product C11B?

• A)$74,000
• B)$(521,000)
• C)$(74,000)
• D)$521,000

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Definitions:

Postcentral Gyrus

An area of the cerebral cortex involved in processing touch and proprioception information.

Frontal Lobe

Part of the brain located at the front of each cerebral hemisphere and involved in movements, decision making, problem solving, and planning.

Precentral Gyrus

A region of the frontal lobe in the brain responsible for voluntary muscle movements, containing the primary motor cortex.

Spinothalamic Pathway

A sensory pathway of the spinal cord that transmits pain and temperature sensations to the brain.