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Assume a retailing company has two departments -Department A and Department B. The company's most recent contribution format income statement follows: The company says that

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Assume a retailing company has two departments -Department A and Department B. The company's most recent contribution format income statement follows: The company says that $110,000 of the fixed expenses being charged to Department 8 are sunk costs or allocated costs that will continue if the segment Is discontinued. Howevec, if Department B is discontinued the sales in Department A will drop by 5%. What is the financial advantage (disadvantage) of discontinuing Department B? Multiple Criatice 5(20.000) 5,124,0001 The company says that $10,000 of the fwed expenses being charged to Department 8 are sunk costs or allocated costs that will continue if the segment is discontinued. Howevec, it Department B is discontinued the sales in Department A will drop by 5%. What is the financial advantage (disadvantage) of dscontinuing Depsotment 8 ? 5200000 sen300

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