Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A segment has the following data: Sales $ 7 3 0 0 0 0 Variable expenses , 2 1 0 0 0 0 Fixed expenses

A segment has the following data:
Sales
$730000
Variable expenses ,210000
Fixed expenses ,550000
What will be the incremental effect on net income if this segment is eliminated, assuming the segment's fixed expenses can be allocated to profitable segments?
$3500 decrease
$520000 decrease
Cannot be determined from the data provided
$520000 increase
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Comparative international accounting

Authors: Christopher nobes, Robert parker

9th Edition

273703579, 978-0273703570

More Books

Students also viewed these Accounting questions