Question
Division B has a divisional contribution of $250,000. After the allocation of $180,000 of common costs,it is making a profit of $70,000. Assuming all other
Division B has a divisional contribution of $250,000. After the allocation of $180,000 of common costs,it is making a profit of $70,000. Assuming all other factors are equal, if the division were closed, the effect on the overall profit of the organization would be:
a. a decrease of $180,000.
b. a decrease of $250,000.
c. an increase of $70,000.
d. an increase of $180,000.
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Accounting For Decision Making And Control
Authors: Jerold Zimmerman
7th Edition
0078136725, 9780078136726
