Multiple Choice
Brandy Company is deciding whether or not to discontinue one of its divisions.The division's contribution margin is $27,000 per year.The fixed costs charged to the division total $32,000, but $15,000 would be eliminated if the division is discontinued.If the division is eliminated, the overall operating income will
A) decrease by $9,000.
B) decrease by $12,000.
C) decrease by $15,000.
D) increase by $27,000.
Correct Answer:
Verified
Correct Answer:
Verified
Q58: Ledbetter, Inc.has the following production and cost
Q59: The contribution margin of a particular segment
Q60: An opportunity cost is the contribution margin
Q61: According to the theory of constraints, which
Q62: Which of the following laws prohibits companies
Q64: Given the following data, what is the
Q65: The costs that should be included in
Q66: Because of rising salaries and cost of
Q67: Which of the following operations would be
Q68: When choosing between alternatives, the contribution margin