Department H Has a Gross Profit of $48 000, Direct

Multiple Choice

Department H has a gross profit of $48 000, direct departmental expenses of $33 500 and allocated expenses of $18 200 giving a net loss of $3 700. What would be the effect on the total organisation's profit if Department H was closed?

A) Profits would decrease $14 500
B) Profits would increase by $3 700
C) Profits would increase by $18 200
D) Profits would decrease by $18 200