{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-26T15:10:21-04:00", "answer_date": "2024-05-26 15:10:21", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1746178", "url": "\/study-help\/questions\/assume-a-retailing-company-has-two-departmentsdepartment-a-and-department-1746178", "question_creation_date_js": "2024-05-26T15:10:21-04:00", "question_creation_date": "May 26, 2024 03:10 PM", "meta_title": "[Solved] Assume a retailing company has two depart | SolutionInn", "meta_description": "Answer of - Assume a retailing company has two departments-Department A and Department B. The company's most recent contribution f | SolutionInn", "meta_keywords": "assume,retailing,company,two,departments-department,department,s,recent,contribution,format,income,statement", "question_title_h1": " Assume a retailing company has two departments-Department A and Department B. The company's most recent contribution format Income statement follows: Sales Variable expenses Contribution", "question_title": " Assume a retailing company has two departments-Department A and Department B.", "question_title_for_js_snippet": "Assume a retailing company has two departments Department A and Department B The company's most recent contribution format Income statement follows Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) Total Department A Department B $ 800,000 $ 350,000 $ 450,000 320,000 120,000 200,000 480,000 400,000 230,000 140,000 250,000 260,000 $ 80,000 $ 90,000 $ (10,000) The company says that $110,000 of the fixed expenses being charged to Department B are sunk costs or allocated costs that will continue if the segment is discontinued However, if Department B is discontinued the sales in Department A will drop by 8 What is the financial advantage (disadvantage) of discontinuing Department B Multiple Choice $(118,400) $(136,000) $(132,000) $(138,400)", "question_description": "\"image\"image\"image\"image", "transcribed_text": "Assume a retailing company has two departments-Department A and Department B. The company's most recent contribution format Income statement follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) Total Department A Department B $ 800,000 $ 350,000 $ 450,000 320,000 120,000 200,000 480,000 400,000 230,000 140,000 250,000 260,000 $ 80,000 $ 90,000 $ (10,000) The company says that $110,000 of the fixed expenses being charged to Department B are sunk costs or allocated costs that will continue if the segment is discontinued. However, if Department B is discontinued the sales in Department A will drop by 8%. What is the financial advantage (disadvantage) of discontinuing Department B? Multiple Choice $(118,400) $(136,000) $(132,000) $(138,400)", "related_book": { "title": "Principles of Cost Accounting", "isbn": "9781133712701, 1133187862, 1133712703, 978-1133187868", "edition": "16th edition", "authors": "Edward J. Vanderbeck", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/298.jpg", "uri": "\/textbooks\/principles-of-cost-accounting-16th-edition-298", "see_more_uri": "" }, "free_related_book": { "isbn": "B0BLQLR9MS", "uri": "\/textbooks\/large-print-accounting-ledger-book-1st-edition-b0blqlr9ms-118210", "name": "Large Print Accounting Ledger Book", "edition": "1st Edition" }, "question_posted": "2024-05-26 15:10:21", "see_more_questions_link": "\/study-help\/questions\/business-marketing-2022-June-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/howe-scissors-roof-truss-is-loaded-as-shown", "description": "A Howe scissors roof truss is loaded as shown. 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