Question
Barley Entreprise Inc. Experts it's three departments to yield the following income for next year. Dept. D Dept. E Dept. F Sales $5,000 $10,000 $4,000
Barley Entreprise Inc. Experts it's three departments to yield the following income for next year.
Dept. D Dept. E Dept. F
Sales $5,000 $10,000 $4,000
Expenses
Avoidable 3,000 2,000 5,000
Unavoidable 4,000 4,000 1,000
Total expenses 7,000 6,000 6,000
Net Income (loss) $(2000) $4,000 $(2,000)
Which of the following statements is true regarding Flower's business segments?
A. If Dept. F is eliminated; overall profit will increase by $2,000
B. Overall profit will decline no matter which of these segments is eliminated.
C. If Dept. E is eliminated, overall profit will decline $4,000
D. If Dept. D is eliminated, overall profit will decrease by $2,000
E. Eliminating Dept. F will reduce overall profit more than eliminating Dept. D
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