Question
Help posted already and my answers were incorrect study has been conducted to determine if one of the departments in Anderson Company should be discontinued.
Help posted already and my answers were incorrect
study has been conducted to determine if one of the departments in Anderson Company should be discontinued. The sales in this department are $83,000 per year and the variable costs are $32,000 per year. Fixed expenses charged to the department are $65,000 per year. It has been determined that $47,000 of these fixed expenses could be eliminated if the department is discontinued. Should this department be eliminated? What would happen to Anderson Companys overall net income if this department were discontinued? Prepare a Segmented Income Statement showing Segment Margin to support your answer.
(2 Points)
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