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17 4 points Jame Rogers operates a small grocery store with three divisions. Floral, Groceries and Meats. During the most recent period the company accountant
17 4 points Jame Rogers operates a small grocery store with three divisions. Floral, Groceries and Meats. During the most recent period the company accountant reported the following results Sales Variable Costs Fixed Costs Income Floral $1,500,000 1,400,000 400 000 $300,000 Groceries $2,300,000 1.800.000 200.000 $300 000 Meat $2.900.000 2.400,000 300,000 $200.000 Total $5.700,000 5.600,000 900.000 $200.000 OOOO Ansume that if the Flor Department is closed sales in groceries will decrease by 10% and 25% of the fixed costs now located to the Floral Department will be ved Under these conditions what will be the effect on income of the Floral Department is done No change None of the above Decrease by 550,000 Increase by $60,000
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