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Multple Cnolce $(140,000) $(144,000) $(163,000) $[143,000] Assume a retalllrg company has departmentsDepartment A art Department B. The compary'g most recent contrlbutlon format Income statement follows:
Multple Cnolce $(140,000) $(144,000) $(163,000) $[143,000]
Assume a retalllrg company has departmentsDepartment A art Department B. The compary'g most recent contrlbutlon format Income statement follows: Total Depart*nt A Departen t 128, ave 23e,aee 14e, aee Sales Variable expenses Contribution margin Fixed expenses Wet operating ira:ome (loss) S sae,eee 32e,eee 4se,eee S se,ee S 3se,aee S ese,ae 2se,eae S se,ae S (le,ae) The company ga-yE that 330.000 of the fixed expenses belng charged to Department 3 are gunk costs or allocated costs that MII contlnue If the segment lg dlgcontlnued. However. If Department S Is dlgcontlnued the Eales In Department A WII drop by 10%. What IE the finerclel of dlgcontlnulng Department 3? cnolce O O O
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