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A company expects its two subsidiaries to have the following net income/loss for the next year. Subsidiary A Subsidiary B Total Sales $ 62,000 $
A company expects its two subsidiaries to have the following net income/loss for the next year.
| Subsidiary A | Subsidiary B | Total |
Sales | $ 62,000 | $ 35,000 | $ 97,000 |
Avoidable Expenses | 31,000 | 28,000 | 59,000 |
Unavoidable Expenses | 12,000 | 14,000 | 26,000 |
Net Income (loss) | $ 19,000 | $ (7,000) | $ 12,000 |
If the company decides to eliminate Subsidiary B, what will be the companys projected net income/loss for the next year?
Multiple Choice
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$ 12,000 net income.
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$ 10,000 net loss.
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$ 9,000 net loss.
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$ 5,000 net income.
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$ 19,000 net income.
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