The Management of Cackowski Corporation Has Been Concerned for Some

question 123

Multiple Choice

The management of Cackowski Corporation has been concerned for some time with the financial performance of its product I11S and has considered discontinuing it on several occasions.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 $185, 000 of the fixed manufacturing expenses and $132, 000 of the fixed selling and administrative expenses are avoidable if product I11S is discontinued. According to the company's accounting system, what is the net operating income earned by product I11S? Include all costs in this calculation-whether relevant or not.

• A)$410, 000
• B)$46, 000
• C)$(46, 000)
• D)$(410, 000)

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Definitions:

Reward

An incentive or benefit given for some form of achievement, effort, or behavior, aimed at encouraging or reinforcing certain actions.

Self-enhancing Claims

Statements people make to promote or highlight their positive qualities, often to present themselves in a favorable light.

Present Themselves

The way individuals exhibit or portray themselves in various situations, often influenced by social norms and personal objectives.

Social Comparison Theory

A theory suggesting people determine their own social and personal worth based on how they stack up against others.