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I did not get this question correct, any help on where I went worng? A division of a large company reports the information shown below
I did not get this question correct, any help on where I went worng?
A division of a large company reports the information shown below for a recent year. Variable costs and direct fixed costs are avoidable, and 45% of the indirect fixed costs are avoidable. The following information are: Sales Variable costs Fixed costs $250,000 143,000 Direct Indirect 33,000 55,000 Operating loss $ (19,000) 1-a. Compute the total amount of avoidable expenses. Revenues Avoidable expenses Revenues are greater than (less than) avoidable expenses by $ 250,000 45,450 204,550 1-b. Based on this information, should the division be eliminated? Yes O No
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