Sale of one of its products known as a tam. clemson company is trying to determine whether or not to discontinue the manufacture and sale of tams. the operating results reported above for last year are expected to continue in the foreseeable future if the product is not dropped. the fixed manufacturing overhead represents the costs of production facilities and equipment that the tam product shares with other products produced by clemson. if the tam product were dropped, there would be no change in the fixed manufacturing costs of the company. 29. assume that discontinuing the manufacture and sale of tams will have no effect on the sale of other product lines. if the company discontinues the tam product line, the change in annual operating income (or loss) should be: a. $55,000 decrease b. $65,000 decrease c. $90,000 decrease d. $70,000 increase

A. economic resources to be used or turned into cash within one year. b. reports assets, liabilities, and stockholders' equity. c. decrease assets; increase liabilities and stockholders' equity. d. increase assets; decrease liabilities and stockholders' equity. e. an exchange or event that has a direct and measurable financial effect. f. accounts for a business separate from its owners. g. the principle that assets should be recorded at their original cost to the company. h. a standardized format used to accumulate data about each item reported on financial statements. i. the basic accounting equation. j. the two equalities in accounting that aid in providing accuracy. k. the account credited when money is borrowed from a bank using a promissory note. l. cumulative earnings of a company that have not yet been distributed to the owners. m. every transaction has at least two effects. n. amounts presently owed by the business. transaction, separate entity assumption, balance sheet, liabilities, assets, current assets, notes payable, duality of effects, retained earnings, debit.