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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 $8,000 $9,000 $9,200 Expenses
A company expects its three departments to yield the following income for next year: |
Dept. Q | Dept. R | Dept. S | |
Sales | $8,000 | $9,000 | $9,200 |
Expenses | |||
Avoidable | 2,800 | 3,400 | 4,400 |
Unavoidable | 1,900
| 5,200
| 5,400
|
Total expenses | 4,700
| 8,600
| 9,800
|
Net income (loss) | $3,300
| $400
| $(600)
|
Compute the change to the company's total net income if Dept. S is eliminated. |
$4,800 increase
$600 increase
$600 decrease
$9,200 decrease
$4,800 decrease
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