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Rudik [331]
2 years ago
13

A segment has the following data:

Business
1 answer:
ankoles [38]2 years ago
4 0

Answer:

Net income will decrease by $400,000

Explanation:

Currently this business unit is generating a net loss of $150,000:

total revenue - variable expenses - fixed costs = $700,000 - $300,000 - $550,000 = -$150,000

if the unit is eliminated, then the revenue and variable expenses will be gone, but the fixed costs will be allocated to other business units. So instead of losing $150,000, the company will lose $550,000. The company's net income will decrease by $550,000 - $150,000 = $400,000

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The following information is available for two different types of businesses for the Year 1 accounting year. Hopkins CPAs is a s
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pooled task interdependence.

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Wendy, the CEO of an oil drilling company, and her top management team recently discovered that their facilities are damaging a
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Answer

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