The Management of Heider Corporation Is Considering Dropping Product J14V

question 34

Multiple Choice

The management of Heider Corporation is considering dropping product J14V.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 $211,000 of the fixed manufacturing expenses and $172,000 of the fixed selling and administrative expenses are avoidable if product J14V is discontinued.What would be the effect on the company's overall net operating income if product J14V were dropped?

• A)Overall net operating income would decrease by $55,000.
• B)Overall net operating income would increase by $160,000.
• C)Overall net operating income would increase by $55,000.
• D)Overall net operating income would decrease by $160,000.

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Definitions:

Specificity

The ability to distinctly identify or recognize differences, often used in the context of immune responses or biochemical interactions.

Palatine Tonsils

Lymphatic tissue located on either side of the throat that helps defend the body against infection by trapping pathogens.

Abdominal Cavities

Regions within the abdomen that house major organs, divided primarily into the peritoneal cavity, pelvic cavity, and retroperitoneal space.

Red Pulp

Reddish brown substance of the spleen consisting of venous sinuses and the tissues intervening between them, called pulp cords.