Answered step by step
Verified Expert Solution
Question
1 Approved Answer
need answer ASAP PLEASE Corporation has two departments, Kids and Adults. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution
need answer ASAP PLEASE
Corporation has two departments, Kids and Adults. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution Margin Fixed Expenses Net operating income foss) Department Total Kids Adults $4,200,000 $3,000,000 $1,200,000 2.000.000 1.500.000 500.000 2.200,000 1,500,000 700,000 2.200.000 1.300.000 900.000 0 200,000 (200,000) A study indicates that $50,000 of the foxed expenses being charged to the Adults Department are sunk costs or allocated costs that will continue even if the Adults Department is dropped. In addition, the elimination of the Adults Department will result in a 20% decrease in the sales of the Kids Department Corporation as a whole? Q. If the Adults Department is dropped, what will be the effect on the net operating income of the Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started