Swanson Company Has 3 Divisions: X,Y,and Z

question 116

Multiple Choice

Swanson Company has 3 divisions: X,Y,and Z.Division X's income statement shows the following for the year ended December 31: Cost of goods sold is 75 percent variable and 25 percent fixed.Of the fixed costs,60 percent are avoidable if the division is closed.All of the selling expenses relate to the division and would be eliminated if Division X were eliminated.Of the administrative expenses,90 percent are applied from corporate costs.If Division X were eliminated,Swanson's income would

• A)increase by $150,000.
• B)decrease by $ 75,000.
• C)decrease by $155,000.
• D)decrease by $215,000.

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Definitions:

Membrane Channel Protein

Integral membrane proteins forming pores through cellular membranes, allowing selective transport of ions and molecules across membranes, crucial for various physiological processes.

Phospholipid Bilayer

The fundamental structure of cell membranes, composed of two layers of phospholipid molecules.

Integral Protein

Proteins that are permanently embedded within the plasma membrane, facilitating various cellular processes.

Hypertonic Solution

A solution with a higher concentration of solutes compared to another solution, leading to osmosis out of a cell.