The Following Information Relates to Next Year's Projected Operating Results

question 6

Multiple Choice

The following information relates to next year's projected operating results of the Consumer Division of Xampa Corporation: If the Consumer Division is eliminated, $1, 600, 000 of the above fixed expenses could be avoided.What will be the effect on Xampa's profit next year if Consumer Division is eliminated?

• A)$300, 000 increase
• B)$300, 000 decrease
• C)$200, 000 decrease
• D)$200, 000 increase

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Definitions:

Blood Plasma

The liquid component of blood that holds the blood cells in suspension; it is the blood's supernatant fluid, consisting mainly of water and dissolved proteins, glucose, clotting factors, mineral ions, hormones, and carbon dioxide.

Protein

Complex organic molecules made up of amino acids, essential for the structure, function, and regulation of the body's cells, tissues, and organs.

Albumin

A water-soluble protein found in blood plasma and various bodily fluids, functioning in maintaining osmotic pressure and transporting substances.

Equilibrium Constant

A dimensionless number that describes the ratio of the concentration of products to reactants at equilibrium in a reversible chemical reaction.