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11).The Quilt Company has two divisions -- Contemporary and Amish. The divisions have the following revenues and expenses Contemporar Sales Variable costs Direct fixed costs
11).The Quilt Company has two divisions -- Contemporary and Amish. The divisions have the following revenues and expenses Contemporar Sales Variable costs Direct fixed costs Allocated corporate costs Net income (loss) S900,000 450,000 260,000 240,000 (50,000) Amish $800,000 300,000 210,000 190,000 100,000 The management at Quilt is pondering the elimination of Contemporary Division. If Contemporary were eliminated, its direct fixed costs could be avoided. Given these data, the elimination of Contemporary Division would change company net income by: S 100,000 S 150,000 S 50,000 d. S(140,000) e. S(190,000)
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