Laurel Inc

question 60

Multiple Choice

Laurel Inc. has three product lines: A, B, and C. Management is considering dropping product line C. If it is discontinued, one-half of its fixed costs can be avoided. The discontinuation of product line C would:

• A) decrease net income by $3,500.
• B) increase net income by $1,000.
• C) decrease net income by $12,500.
• D) increase net income by $4,500.

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Definitions:

Prosecutor

A legal representative who brings charges against a suspect in a court of law and leads the case against the defendant.

Michael Nifong

Michael Nifong is a former District Attorney of Durham County, North Carolina, known for his mishandling of the Duke lacrosse case, which led to his disbarment for ethics violations.

Disbarred

The action of revoking a lawyer's license to practice law due to misconduct or unethical behavior, preventing them from practicing in a professional capacity.

Plea Bargaining

A legal process in which a defendant agrees to plead guilty to a lesser charge in exchange for a more lenient sentence or the dropping of other charges.