The Management of Fannin Corporation Is Considering Dropping Product H58S

question 88

Multiple Choice

The management of Fannin Corporation is considering dropping product H58S.Data from the company's accounting system appear below: In the company's accounting system all fixed expenses of the company are fully allocated to products.Further investigation has revealed that $90, 000 of the fixed manufacturing expenses and $42, 000 of the fixed selling and administrative expenses are avoidable if product H58S is discontinued.What would be the effect on the company's overall net operating income if product H58S were dropped?

• A)Overall net operating income would decrease by $137, 000.
• B)Overall net operating income would increase by $137, 000.
• C)Overall net operating income would decrease by $151, 000.
• D)Overall net operating income would increase by $151, 000.

Understand different types of mergers and acquisitions.

Analyze the financial implications of mergers.

Identify the methods and motivations behind company takeovers.

Recognize the strategies firms use to defend against hostile takeovers.

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Definitions:

Fertility

The natural capability to produce offspring, often influenced by factors such as health, nutrition, and genetics.

Iron Deficiency

A condition resulting from an insufficient amount of iron in the body, leading to reduced levels of hemoglobin in the blood.

Menarche

The first menstrual cycle, or first menstrual bleeding, in female humans; a significant event in female puberty.

Primary Sexual Organs

The main organs directly involved in human reproduction, which in males include the testes producing sperm, and in females, the ovaries producing eggs.