Answered step by step
Verified Expert Solution
Question
1 Approved Answer
X Corp has three segments; A,B and C. The segment margin of A, B and C are 11,000, 12,000 and 9,000, respectively. Allocated fixed cost
X Corp has three segments; A,B and C. The segment margin of A, B and C are 11,000, 12,000 and 9,000, respectively. Allocated fixed cost (common cost) of A is 30% of the total common cost. Segment A has operating income of 7,000 before tax. X needs to eliminate one segment because of decrease in company demand. Tax rate is 25%. What will be the overall corporation net income before tax (operating income) after eliminating the appropriate segment?
Step by Step Solution
★★★★★
3.29 Rating (152 Votes )
There are 3 Steps involved in it
Step: 1
Lets do the calculations 1 Total common cost 7000 030 2333333 ...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Advanced Accounting
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
11th edition
538480289, 978-0538480284
