Blurbery Retailers Has Departments a and B with Departmental Income

Multiple Choice

Blurbery Retailers has departments A and B with departmental income statements as follows.

Blurbery is considering eliminating Department B. Of the total 'other expenses' for the two departments of $44 000, $32 000 are fixed general overhead expenses and the rest are variable expenses based on 10% of sales. What is the present departmental contribution of Department B?

A) $28 000
B) ($3000)
C) $11 000
D) $23 000