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Flower Enterprises Inc. expects its three departments to yield the following income for next year. Sales Dept. F Dept. G Dept. H Expenses $9,000 $10,000
Flower Enterprises Inc. expects its three departments to yield the following income for next year. Sales Dept. F Dept. G Dept. H Expenses $9,000 $10,000 $8,000 Avoidable 3,000 2,000 5,000 Unavoidable 4,000 6,000 1,000 Total expenses 7,000 8,000 6,000 Net income(loss) $2,000 $2,000 $2,000 Which of the following statements is true regarding Flower's business segments? If Dept. F is eliminated, overall profit will decline $5,000. Overall profit will decline by $2,000 if any one of these segments is eliminated. If Dept. G is eliminated, overall profit will decline $8,000. If Dept. H is eliminated, overall profit will increase $3,000. Eliminating Dept. H will reduce overall profit more than eliminating Dept. F.
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