Question
Benjamin Company plans to discontinue a department with a $64,000 contribution margin. Fixed costs are $112,000, of which $58,000 are direct and $54,000 are allocated.
Benjamin Company plans to discontinue a department with a $64,000 contribution margin. Fixed costs are $112,000, of which $58,000 are direct and $54,000 are allocated. What would be the effect of this discontinuance on Benjamin's pretax profit?
A. Decrease of $64,000
B. Decrease of $10,000
C. Decrease of $6,000
D. Increase of $6,000
E. Increase of $10,000
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Loss Control Auditing A Guide For Conducting Fire Safety And Security Audits
Authors: E. Scott Dunlap
1st Edition
1439828865, 978-1439828861
