A Study Has Been Conducted to Determine If Product a Should

question 54

Multiple Choice

A study has been conducted to determine if Product A should be dropped. Sales of the product total $400,000 per year; variable expenses total $270,000 per year. Fixed expenses charged to the product total $160,000 per year. The company estimates that $70,000 of these fixed expenses are not avoidable even if the product is dropped. If Product A is dropped, the company's overall net operating income would:

• A)decrease by $40,000 per year
• B)increase by $40,000 per year
• C)decrease by $30,000 per year
• D)increase by $30,000 per year

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Definitions:

Behavior and Mental Processes

Aspects of psychology that pertain to observable actions (behavior) and internal experiences such as thoughts and emotions (mental processes).

Stability and Change

The concept of how certain aspects of physical, cognitive, social, and emotional development remain stable over time, whereas others change.

Developmental Psychologists

Professionals who study the psychological growth and development that occurs throughout a lifespan.

Nature And Nurture

The debate regarding the influence of genetic inheritance (nature) versus environmental factors (nurture) on human development.