Multiple Choice
Marshal Costumes owns two stores and management is considering eliminating the Mandarin store due to declining sales. Common fixed costs are allocated on the basis of sales. Contribution income statements are as follows: Marshal's management feels that if they eliminate the Mandarin store, that sales in the Arlington store will increase by 10%. If the Mandarin store is closed, what is the incremental effect on profit for Marshal Costumes?
A) Increase by $17,000
B) Decrease by $36,000
C) Increase by $22,000
D) Decrease by $20,000
Correct Answer:

Verified
Correct Answer:
Verified
Q14: A manufacturing company will have a binding
Q22: Each pound of the raw material, ore,
Q38: Swell Computers has 12 obsolete computers that
Q55: Each pound of the raw material, ore,
Q67: Conviser Tools manufactures a number of products
Q68: Which of the following is quite often
Q69: Which of the following is a cost
Q73: One advantage of using an outside supplier
Q75: Avoidable costs are always relevant.
Q86: The value of benefits foregone by selecting