When software companies develop prepackaged software it is called off-the-shelf systems

DM Corporation has provided you with the following budgeted income statement for one of its products

Sales revenue $700,000 Variable costs (430,000 ) Contribution margin $270,000 Fixed costs (320,000 ) Operating loss $(50,000 ) DM has just encountered environmental problems with the product and will be forced to drop the product line altogether. DM will be able to eliminate 70% of the fixed costs. What will be the impact on operating income of the company? A) Operating income will decrease by $224,000. B) Operating income will decrease by $46,000. C) Operating income will increase by $224,000. D) Operating income will increase by $46,000.

An accrued expense is an expense which:

a. has been incurred but not paid b. has been paid but not incurred c. has been incurred and paid d. will be incurred and paid in the future e. is incidental to company's operation