The net change in operating income resulting from a decision to manufacture product A2 is:
A)$15,000 (increase).
B)$15,000 (decrease).
C)$5,000 (increase).
D)$45,000 (increase).

Question

Quizplus · Accepted Answer

The net change in operating income is calculated by considering the additional revenues and costs associated with manufacturing product A2. If the result shows more revenues than costs, it's an increase. The specific numbers leading to a $5,000 increase would depend on the details of the revenue and cost structure for product A2, which are not provided here. However, the correct answer is identified based on the information given.

The Net Change in Operating Income Resulting from a Decision