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

-Assume that product line Z is discontinued and replaced with product line Y. This will double the production and sales of product line Y without increasing fixed costs. Operating income will
A) increase $4,200.
B) increase $13,000.
C) increase $14,000.
D) decrease $1,000.

Question

Ulmer Company has three product lines, X, Y, and Z. The following information is available:
  
-Assume that product line Z is discontinued and replaced with product line Y. This will double the production and sales of product line Y without increasing fixed costs. Operating income will
A) increase $4,200. 
B) increase $13,000. 
C) increase $14,000. 
D) decrease $1,000.

Quizplus · Accepted Answer

The Answer of Ulmer Company has three product lines, X, Y, and Z. The following information is available:
  
-Assume that product line Z is discontinued and replaced with product line Y. This will double the production and sales of product line Y without increasing fixed costs. Operating income will
A) increase $4,200. 
B) increase $13,000. 
C) increase $14,000. 
D) decrease $1,000.

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