Licuado Juice Company Has Four Product Lines; Orange, Tomato, Carrot

question 12

Multiple Choice

Licuado Juice Company has four product lines; Orange, Tomato, Carrot, and Grape. Shown below is last year's income statement segmented by product line: Net operating income last year for Licuado Company as a whole was $24,800.
-If the Carrot product line would have been dropped at the beginning of last year, how would this have changed the net operating income of Licuado Company as a whole?

• A) $2,400 increase
• B) $3,000 decrease
• C) $5,400 increase
• D) $12,000 decrease

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Definitions:

African Slave Trade

The forced transportation and enslavement of African people primarily to the Americas from the 16th to the 19th centuries, a foundational element of global economic and social systems of inequality.

Bacon's Rebellion

A 1676 armed rebellion in the Virginia Colony, led by Nathaniel Bacon against the colonial government, reflecting early tensions between European settlers and Indigenous populations, and economic discontent.

Abolition of Slavery

The legal or formal ending of the practice of enslaving people, where individuals are owned and controlled by others.

Homogenization

The process of making things uniform or similar by blending diverse elements, often leading to a loss of cultural diversity.