CourseLover

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About CourseLover

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Algebra,Applied Sciences,Architecture and Design,Art & Design,Biology,Business & Finance,Calculus,Chemistry,Engineering,Health & Medical,HR Management,Law,Marketing,Math,Physics,Psychology,Programming,Science Hide all
Teaching Since: May 2017
Last Sign in: 286 Weeks Ago
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Education

  • MCS,MBA(IT), Pursuing PHD
    Devry University
    Sep-2004 - Aug-2010

Experience

  • Assistant Financial Analyst
    NatSteel Holdings Pte Ltd
    Aug-2007 - Jul-2017

Category > Accounting Posted 19 Dec 2017 My Price 10.00

affect on operating income

Jim Bean Company has three productlines: D,E, and F. The following information isavailable:D E FSales revenue $ 80,000 $42,000$20,000Variable expenses $ 40,000 $21,000$12,000Contribution margin $ 40,000 $21,000$ 8,000Fixed expenses $ 12,000 $15,000$17,000Operating income(loss)$ 28,000 $6,000$(9,000)Jim Bean Company is thinking of discontinuing product line F because it is reporting an operating loss. All fixed costs are unavoidable. Assuming Jim Bean Company discontinues line F and is able to double the production and sales of product line E without increasing fixed costs. What affect will this have on operatingincome?

A.

Increase$34,000

B.

Increase$30,000

C.

Increase$13,000

D.

Decrease$13,000

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Answers

CourseLover
(12)
Status NEW Posted 19 Dec 2017 06:12 AM My Price 10.00

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