Power Inc Has Two Divisions, Windsor and Ridge

question 103

Multiple Choice

Power Inc. has two divisions, Windsor and Ridge. Following is the income statement for the past month: What would Power's profit margin be if the Windsor division was dropped and all fixed costs are unavoidable?

• A) $0
• B) $80,000 loss
• C) $42,00 profit
• D) $80,000 profit

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