Black Productions has three models: D,E,and F.The following information is available:

Black Productions is thinking of discontinuing model F because it is reporting an operating loss.All fixed costs are unavoidable.Assume Black Productions is able to increase the sales revenue of product F to $35,000 with no change in volume of units sold and no change in variable costs or fixed costs.What effect will this have on operating income?

Question

Black Productions has three models: D,E,and F.The following information is available:

Black Productions is thinking of discontinuing model F because it is reporting an operating loss.All fixed costs are unavoidable.Assume Black Productions is able to increase the sales revenue of product F to $35,000 with no change in volume of units sold and no change in variable costs or fixed costs.What effect will this have on operating income?

Quizplus · Accepted Answer

A) 11ea7fd5_6744_e09e_99dd_e9ccb4e4877b_TB1766_00 11ea7fd5_6744_e09f_99dd_25ba8f464839_TB1766_00

Black Productions Has Three Models: D,E,and F