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A recent accounting graduate from Marvel State University evaluated the operating performance of Cullumber Company's four divisions. The following presentation was made to Cullumber's Board
A recent accounting graduate from Marvel State University evaluated the operating performance of Cullumber Company's four divisions. The following presentation was made to Cullumber's Board of Directors. During the presentation, the accountant made the recommendation to eliminate the Southern Division stating that total net income would increase by $50,400. ( 5ee analysis below) For the other divisions, cost of goods sold is gon variabie and operating expenses are 705 variable. The cost of goods sold for the Southern Divhisn h 30% fived, and its operating expenses are 75% fived. If the division is eliminated, only $12,600 of the fived operating costs will be eliminated. Prepare a coerect analysis using incremental analysis for the new accountant f f nter negative amounts using either a negative sign preceding the number es. -45 or parentheses e.g. (45). Do not leave any fiekd blank. Enter 0 for the amounts, List variable expenses befare fured expenses.) Question 9 of 10 7)
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