Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Crandall, Inc. has two divisions, Montana and the Alabama. There are no avoidable, direct fixed costs for either division. The following is the income statement

image text in transcribed
Crandall, Inc. has two divisions, Montana and the Alabama. There are no avoidable, direct fixed costs for either division. The following is the income statement for the previous year. Montana Alabama Total Sales $435,000 $500,000 $935,000 Variable costs $220,000 $315,000 $535,000 Contribution margin $215,000 $185,000 $400,000 Common fixed costs $150,000 $200,000 $350,000 Net operating income $65.000 ($15,000) $50,000 What would the company's total net operating income for loss) be if the Alabama division was dropped? $45.000 net operating loss $65.000 net operating income $250,000 net operating income $135.000 net operating loss

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Marketing Audit Benefits How A Marketing Audit Improves Your Business's Performance

Authors: Sharita Winder

1st Edition

B0BQXYKYYL, 979-8371064820

More Books

Students also viewed these Accounting questions