Question
Ramos Corporation is considering the elimination of one of its segments. The segment incurs the following fixed costs. If the segment is eliminated, the building
| Ramos Corporation is considering the elimination of one of its segments. The segment incurs the following fixed costs. If the segment is eliminated, the building it uses will be sold. |
| Advertising expense | $ | 84,000 | |
| Supervisory salaries | 171,000 | ||
| Allocation of companywide facility-level costs | 54,000 | ||
| Original cost of building | 128,000 | ||
| Book value of building | 66,000 | ||
| Market value of building | 94,000 | ||
| Maintenance costs on equipment | 72,000 | ||
| Real estate taxes on building | 11,000 | ||
| Required |
| Based on this information, determine the amount of avoidable cost associated with the segment.
I have tried the Answer 338,000 it is not correct. |
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Social Media Audit Measure For Impact
Authors: Urs E. Gattiker
2013 Edition
1461436028, 978-1461436027
