Question
6. A business segment has the following data: Sales Revenue$154,000 Cost of Goods Sold (expense)144,000 Sales and Admin expense 80,000 Cost of Goods Sold is
6. A business segment has the following data:
Sales Revenue$154,000
Cost of Goods Sold (expense)144,000
Sales and Admin expense 80,000
Cost of Goods Sold is 18% fixed cost, and variable Sales and Admin expense is 14% of Sales Revenue. Calculatethe total effect on net income if this business segment is discontinued, assuming fixed costs are unaffected by the decision.
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Advanced Accounting
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
12th edition
133451860, 978-0133451863
