Question 2

Question 2 Not yet answered Marked out of A business is thinking of closing Division Z The Contribution Margin of Division Z is -200. Fixed Costs associated with Division Z are 600 Of the Fixed Costs, all are avoidable if Division Z is closed What is the impact of closing Division Z? 1.00 p Flag question Select one: O a. Net Income increases by 400 o b. Net Income decreases by 340 O c. Net Income increases by 150 O d. None of these answers O e. Net Income increases by 500