Assume a retalling company has two departments-Department A and Department B. The company's most recent contribution format follow:

		Total Department A	Department B
		800,000 $ 350,000	450,000
Sales		350,000 250,000	100, 000
Variable expenses		450, 000 100,000	350, 000
Contribution margin		400,000 140,000	260, 000
Fixed expenses Net operating income (loss)		$ 50,000 $ (40, 000)	$ 90,000

The company says that $60,000 of the fixed expenses being charged to Department A are sunk costs or allocated costs that wi discontinued. However, if Department A is discontinued the sales in Department B will drop by 18%. What is the financial advan discontinuing Department A?

Assume a rotailing company has two departments - Department A and Department B. The company's most recent contribution format follows The company says that $60,000 of the fixed expenses being charged to Department A are sunk costs or allocated costs that wi discontinued. However, if Department A is discontinued the sales in Department B will drop by 18%. What is the financial advant discontinuing Department A? Multiple Choice $(83,000) $(92,000)