Question
A firm contemplates to drop a segment that shows a contribution margin of P25,000. Overhead allocated to the segment amounts to P40,000 of which P17,500
A firm contemplates to drop a segment that shows a contribution margin of P25,000. Overhead allocated to the segment amounts to P40,000 of which P17,500 cannot be eliminated. What is the effect of this discontinuance on the company's profit before tax?
[Indicate if increase or decrease]
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Fundamental Managerial Accounting Concepts
Authors: Thomas P Edmonds, Philip R Olds
9th Edition
1259969509, 9781259969508
