Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Congress Corporation has two divisions--senate and house. The divisions have the following revenues and expenses: senate house Sales $ 585,000 $ 473,000 Variable costs

The Congress Corporation has two divisions--senate and house. The divisions have the following revenues and expenses:

senate

house

Sales

$ 585,000

$ 473,000

Variable costs

174,000

228,300

Traceable fixed costs

145,500

207,000

Allocated common corporate costs

131,000

176,800

Net operating income (loss)

$ 134,500

$ (139,100)

The management of congress is considering the elimination of the house Division. If the house Division were eliminated, its traceable fixed costs could be avoided. Total common corporate costs would be unaffected by this decision. Given these data, the elimination of the house Division would result in an overall company net operating income (loss) of:

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Asymmetric Cost Behavior Implications For The Credit And Financial Risk Of A Firm

Authors: Kristina Reimer

1st Edition

3658228210, 9783658228217

More Books

Students also viewed these Accounting questions

Question

2. What does the other person defi ne as the beginning?

Answered: 1 week ago

Question

1. What do you defi ne as the start of interaction?

Answered: 1 week ago