Sophie Company is considering closing one of its product lines. Current data on the product line are as follows. Sales revenue $25,000 Variable costs 19,000 Direct avoidable fixed costs* 7,000 Indirect allocated fixed costs** 5,000 Net Income (Loss) on the product line ($6,000) *The direct avoidable fixed costs will be eliminated if the product line is closed. **The indirect allocated fixed costs will remain the same whether the product line is continued or closed. IN ADDITION, if Sophie closes the product line, Sophie can sublease its production facility to another company and earn sublease revenue of $1,500 per year. Assume that Sophie decides to discontinue this product line. By how much will overall company net income change

Which of the following statements about brand names is true? brand names give the seller an incentive to provide consistently high-quality products and services in order to protect the reputation of the brand. brand names are always economically wasteful since they dupe consumers into buying more expensive goods and services that are no different from generic versions. it is always rational to prefer brand names over generic substitutes. read the following example and determine whether it illustrates a common critique or defense of advertising. musashi sees a commercial for a brand x clothing company that depicts the wearers of the clothes out having a good time with friends. although he doesn't particularly need new clothes, the commercial prompts him to buy a brand x t-shirt.