Question
Indian Company plans to discontinue a department that has a contribution margin of P60,000 and P100,000 in fixed costs. Of the fixed costs, P60,000 would
Indian Company plans to discontinue a department that has a contribution margin of P60,000 and P100,000 in fixed costs. Of the fixed costs, P60,000 would still continue even if the department is closed.The effect of this discontinuance on Indian's overall net operating income would be a(an)
a. Zero effect
b. increase of P40,000
c. increase of P20,000
d. decrease of P20,000
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Essentials Of Forensic Accounting
Authors: Michael A Crain, William S Hopwood
2nd Edition
1948306441, 978-1948306447
