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A company expects its three departments to yield the following income for next year: Dept. Q Dept. R Dept. S Sales $7,500 $8,500 $8,900 Expenses
A company expects its three departments to yield the following income for next year: |
Dept. Q | Dept. R | Dept. S | |
Sales | $7,500 | $8,500 | $8,900 |
Expenses | |||
Avoidable | 2,600 | 3,300 | 4,300 |
Unavoidable | 1,800
| 4,900
| 5,175
|
Total expenses | 4,400
| 8,200
| 9,475
|
Net income (loss) | $3,100
| $300
| $(575)
|
Compute the change to the company's total net income if Dept. S is eliminated. |
$4,600 increase
$575 increase
$575 decrease
$4,600 decrease
$8,900 decrease
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