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Thanks in advance King Kong Inc. has two divisions, Tom and Jerry. Following is the income statement for the previous year. Sales Variable costs Contribution
Thanks in advance King Kong Inc. has two divisions, Tom and Jerry. Following is the income statement for the previous year. Sales Variable costs Contribution Margin Fixed Costs (allocated) Profit Margin Tom Jerry Total $562,100 $338,200 $900, 300 178,400 176, 100 354,500 383,700 162, 100 545,800 286,575 172,825 459,400 $ 97,125 $(10,725) $ 86,400 What would KK profit margin be if the Tom's division was dropped and all fixed costs are unavoidable? Multiple Choice $75,700 loss O $383700 prot O $97125 prole O $86,400 pro
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