Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The management accountant for the C.R. Groceries has prepared the following segmented income statement for the most current year. Produce Fish & Meat Sundries Total

The management accountant for the C.R. Groceries has prepared the following segmented income statement for the most current year.

Produce Fish & Meat Sundries Total
Sales $80,000 $120,000 $60,000 $260,000
Variable Expenses 36,000 65,000 20,000 121,000
Contribution Margin 44,000 55,000 40,000 139,000
Other Costs 18,000 21,000 8,000 47,000
Segment Margin 26,000 34,000 32,000 92,000
Allocated Avoidable Costs 2,000 3,000 3,000 8,000
Segment Income 24,000 31,000 29,000 84,000
Allocated Corporate Costs 7,000 7,000 7,000 21,000
Corporate Profits $17,000 $24,000 $22,000 $63,000

If the Fish & Meat department had been discontinued, the short-term effect on corporate profits would be a decrease 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

Step: 3

blur-text-image

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

Auditors Guide To IT Auditing

Authors: Richard E. Cascarino

2nd Edition

1118147618, 978-1118147610

More Books

Students also viewed these Accounting questions