Question
Department 2 of Simmons, Inc. has revenues of $300,000, variable expenses of $180,000, and allocated, indirect fixed expenses of $150,000. If the department is eliminated,
Department 2 of Simmons, Inc. has revenues of $300,000, variable expenses of $180,000, and allocated, indirect fixed expenses of $150,000. If the department is eliminated, what will be the effect on net income?
A. $ 30,000 increase
B. $ 30,000 decrease
C. $150,000 decrease
D. $120,000 decrease
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CISA Certified Information Systems Auditor Bundle
Authors: Peter H. Gregory
1st Edition
1260459861, 978-1260459869
