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Question 4 2 pts Games Inc. has two product lines, online games and in-store games. They are considering dropping the in-store games divisions so they
Question 4 2 pts Games Inc. has two product lines, online games and in-store games. They are considering dropping the in-store games divisions so they can focus on online games. Below is a segmented income statement for the in-store games division. Sales $ 121,000 Variable expenses 90,600 Contribution margin 30,400 Administrative expenses 18,990 General expenses 21,600 Net income $ (10,190) Sales and variable expenses are traceable directly to the in-store games segment. If the in-store division were dropped, what would be the effect on the company related to variable expenses? $190,600) Not relevant to this decision $90,600 $0 Question 5 2 pts Games Inc. has two product lines, online games and in-store games. They are considering dropping the in-store games divisions so they can focus on online games. Below is a segmented income statement for the in-store games division. Sales $ 121,000 Variable expenses 90,600 Contribution margin 30,400 Administrative expenses 18,990 General expenses 21.600 Net income $ (10,190) Sales and variable expenses are traceable directly to the in-store games segment. If the in-store division were dropped, what would be the effect on the company related to sales? Not relevant to this decision $0 $121,000 $(121,000)
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