A Study Has Been Conducted to Determine If Product a Should

question 17

Multiple Choice

A study has been conducted to determine if Product A should be dropped.Sales of the product total $200,000 per year;variable expenses total $140,000 per year.Fixed expenses charged to the product total $90,000 per year.The company estimates that $40,000 of these fixed expenses will continue even if the product is dropped.These data indicate that if Product A is dropped,the company's overall net operating income would:

• A)decrease by $20,000 per year
• B)increase by $20,000 per year
• C)decrease by $10,000 per year
• D)increase by $30,000 per year

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Definitions:

CRP

C-reactive protein, a substance produced by the liver in response to inflammation, measured in blood tests as an indicator of infection or autoimmune disorders.

Estrogen Hormone Therapy

A treatment involving the use of estrogen hormones to relieve symptoms associated with menopause and to reduce the risk of osteoporosis in postmenopausal women.

Abbreviation

The process of shortening something, usually a word or phrase, by omitting letters or using initial letters instead.

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A type of fracture of the distal radius in the forearm with dorsal (posterior) displacement of the wrist and hand.