Davenport Inc

question 22

Multiple Choice

Davenport Inc.has two divisions,Howard and Jones.Following is the income statement for the past month: What would Davenport's profit margin be if the Jones division was dropped?

• A)$80,000 loss
• B)$100,000 loss
• C)$50,000 profit
• D)$70,000 profit

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Definitions:

Profit Center

A division or segment of a company that is directly responsible for generating its own revenue and profits.

Decentralized Operations

A management approach where decision-making processes are distributed among various levels within the organization, rather than being concentrated at the top.

Strategic Planning

Developing long-term actions to achieve a company’s objectives.

Decentralization

The distribution of decision-making powers away from a central authority to lower or local levels of an organization, government, or entity.