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

question 4

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

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Definitions:

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