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plz make answer skinny to make visible for phone The president of Ravens Inc, attended a seminar about the contribution margin model and returned to
plz make answer skinny to make visible for phone
The president of Ravens Inc, attended a seminar about the contribution margin model and returned to her company full of enthusiasm about it. She requested that last year's traditional model income statement be revised, and she received the following report: Division Sales Variable expenses Contribution margin Fixed expenses Het Income (Toss) Total Company $424,000 243,000 $181,000 133,000 $ 48,000 $168,000 101,000 $ 67,00 44,000 $ 23,000 B $108,000 62,000 $ 46,000 49,000 $ 2,000) $148,000 80,000 $ 68,000 40,000 $ 28,000 The president was told that the fixed expenses of $133,000 included $93.000 that had been split evenly between divisions because they were general corporate expenses. After looking at the statement, the president exclaimed, "I knew it Division is a dragon the whole company. Close it down Required: o. Evaluate the president's remark The president's remark ignores the misleading result of arbitrarily allocated fixed expenses. The president's remark ignores the misleading result of arbitrarlly allocated vocable expenses b. Calculate what the company's net income would be if Division B were dosed down Not income without Divini $ 36,000 Step by Step Solution
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