Hamilton,Inc

question 129

Multiple Choice

Hamilton,Inc.has two divisions,Parker and Blaine.Following is the income statement for the previous year: Of the total fixed costs,$600,000 are common fixed costs that are allocated equally between the divisions.What would Hamilton's profit margin be if Blaine were dropped?

• A)$(240,000)
• B)$(150,000)
• C)$110,000
• D)$150,000

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Definitions:

PHStat

An Excel-based software utility that performs statistical analysis, designed as an add-in for Microsoft Excel.

Covariance

A measure indicating the direction of the linear relationship between two variables, whether they tend to move together or in opposite directions.

Two Assets

Refers to any two types of financial instruments or resources owned by individuals or businesses, such as stocks, bonds, or real estate properties.

Overall Risk

The total exposure to loss or potential for unfavorable outcomes in an investment or decision, encompassing various types of risk factors.