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

question 57

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.
-Licuado is considering the implementation of a $5,000 advertising program specifically targeted at one of the four product lines. The program is expected to increase sales for any one of the product lines by $12,000. If the goal is to maximize the company's net operating income, for which product line should Licuado implement the advertising program?

• A) Orange
• B) Tomato
• C) Carrot
• D) Grape
• E) any one of the product lines; the effect on net operating income will be identical

---

Definitions:

Monitor

An electronic visual display for computers, which displays images and data generated by the computer's graphics card.

Properties

Characteristics or attributes that define and describe an object, element, or substance.

Details Pane

A component of a graphical user interface that displays additional information or metadata about a selected file or object within software applications.

Local Account

A user account that is created and stored on an individual computer, allowing access and rights to that computer without relying on network authentication.