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The management accountant for the Martino Organics has prepared the following segmented income statement for the most current year. If the Produce department had been
The management accountant for the Martino Organics has prepared the following segmented income statement for the most current year.
If the Produce department had been eliminated prior to this year, the company would have reported:
Select one:
a. Greater corporate profits.
b. The same amount of corporate profits.
c. Less corporate profits.
d. Resulting profits cannot be determined.
Produc S80 Sundries Total S220,000 121,000 99.000 2 S120 S60 ales Variable e 40 ontribution margin Other costs egment margin llocated avoidable 26 32 52.000 24 31 29 egment income Allocatedc 44.000 21,000 $ 23,000 e costs Corporate profit $ 24 $ 22Step by Step Solution
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