Licuado Juice Company has four product lines; Orange, Tomato, Carrot, and Grape. Shown below is last year's income statement segmented by product line: Net operating income last year for Licuado Company as a whole was $24,800.
-Licuado is considering the implementation of a $5,000 advertising program specifically targeted at one of the four product lines. The program is expected to increase sales for any one of the product lines by $12,000. If the goal is to maximize the company's net operating income, for which product line should Licuado implement the advertising program?
A) Orange
B) Tomato
C) Carrot
D) Grape
E) any one of the product lines; the effect on net operating income will be identical

Question

Licuado Juice Company has four product lines; Orange, Tomato, Carrot, and Grape. Shown below is last year's income statement segmented by product line:  Net operating income last year for Licuado Company as a whole was $24,800.
-Licuado is considering the implementation of a $5,000 advertising program specifically targeted at one of the four product lines. The program is expected to increase sales for any one of the product lines by $12,000. If the goal is to maximize the company's net operating income, for which product line should Licuado implement the advertising program?
A) Orange 
B) Tomato 
C) Carrot 
D) Grape 
E) any one of the product lines; the effect on net operating income will be identical

Quizplus · Accepted Answer

The Answer of Licuado Juice Company has four product lines; Orange, Tomato, Carrot, and Grape. Shown below is last year's income statement segmented by product line:  Net operating income last year for Licuado Company as a whole was $24,800.
-Licuado is considering the implementation of a $5,000 advertising program specifically targeted at one of the four product lines. The program is expected to increase sales for any one of the product lines by $12,000. If the goal is to maximize the company's net operating income, for which product line should Licuado implement the advertising program?
A) Orange 
B) Tomato 
C) Carrot 
D) Grape 
E) any one of the product lines; the effect on net operating income will be identical

Licuado Juice Company Has Four Product Lines; Orange, Tomato, Carrot