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DJH Enterprises has 3 departments. Operating results for 2 0 1 9 are as follows: Department 1 Department 2 Department 3 Sales $ 9 3
DJH Enterprises has departments. Operating results for are as follows:
Department Department Department
Sales $ $ $
Variable Costs
Contribution Margin $ $ $
Direct fixed expenses $ $ $
Common fixed expenses
Total fixed expenses $ $ $
Operating income loss $ $ $
DJH is considering eliminating the departments that show losses. Assume that the direct fixed expenses could be avoided if the department is eliminated.
What effect would elimination of Department have on DJHs total operating income?
Select one:
a It would increase total operating income by $
b It would decrease total operating income by $
c It would decrease total operating income by $
d It would increase total operating income by $
e It would decrease total operating income by $
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