Ulmer Company has three product lines, X, Y, and Z. The following information is available:

-Assuming product line Z is discontinued and the space formerly used to produce product Z is rented for $4,000 per year, operating income will
A) increase $2,200.
B) increase $3,000.
C) increase $4,000.
D) increase $4,800.

Question

Ulmer Company has three product lines, X, Y, and Z. The following information is available:
  
-Assuming product line Z is discontinued and the space formerly used to produce product Z is rented for $4,000 per year, operating income will
A) increase $2,200. 
B) increase $3,000. 
C) increase $4,000. 
D) increase $4,800.

Quizplus · Accepted Answer

The Answer of Ulmer Company has three product lines, X, Y, and Z. The following information is available:
  
-Assuming product line Z is discontinued and the space formerly used to produce product Z is rented for $4,000 per year, operating income will
A) increase $2,200. 
B) increase $3,000. 
C) increase $4,000. 
D) increase $4,800.

Ulmer Company Has Three Product Lines, X, Y, and Z