Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started