Question
50. North Division has the following information: Sales $1170000 Variable expenses 655000 Fixed expenses 620000 If this division is eliminated, the fixed expenses will be
50. North Division has the following information:
| Sales | $1170000 |
| Variable expenses | 655000 |
| Fixed expenses | 620000 |
If this division is eliminated, the fixed expenses will be allocated to the companys other divisions. What is the incremental effect on net income if the division is dropped?
a) $620000 decrease
b) $105000 increase
c) $550000 increase
d) $515000 decrease
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Fundamental financial accounting concepts
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
8th edition
978-007802536, 9780077648831, 0078025362, 77648838, 978-0078025365
