Solved

A Segment Has the Following Data  Sales $600000 Variable costs 320000 Fixed costs 310000\begin{array} { l r } \text { Sales } & \$ 600000 \\\text { Variable costs } & 320000 \\\text { Fixed costs } & 310000\end{array}

Question 52

Multiple Choice

A segment has the following data:
 Sales $600000 Variable costs 320000 Fixed costs 310000\begin{array} { l r } \text { Sales } & \$ 600000 \\\text { Variable costs } & 320000 \\\text { Fixed costs } & 310000\end{array}
What will be the incremental effect on net income if this segment is eliminated,assuming the fixed costs will be allocated to profitable segments?


A) $290 000 decrease
B) $30 000 increase
C) $280 000 decrease
D) $310 000 decrease

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions