Question
Enterprise plans to discontinue a department with 48,000 contribution margin, and allocated overhead of 96,000 of which 42,000 cannot be eliminated. WHat would be the
Enterprise plans to discontinue a department with 48,000 contribution margin, and allocated overhead of 96,000 of which 42,000 cannot be eliminated. WHat would be the effect of this discontinuance on Enterprise's pretax profit?
a. increase of 6,000
b. decrease of 48,000
c. decrease of 6,000
d increase of 48,000
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Managerial Accounting
Authors: Carl S Warren, James M Reeve, Jonathan Duchac
12th Edition
1133952402, 978-1133952404
