Zandy Beverage Company Plans to Eliminate a Branch That Has

question 17

Multiple Choice

Zandy Beverage Company plans to eliminate a branch that has a contribution margin of £50,000 and fixed costs of £75,000. Of the fixed costs, £55,000 cannot be eliminated. The effect of eliminating this branch on net income would be a(n)

• A)decrease of £25,000.
• B)increase of £25,000.
• C)decrease of £30,000.
• D)increase of £30,000.

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Definitions:

Spousal Equivalents

Individuals who are not legally married but have a relationship akin to marriage, receiving similar benefits and recognitions in certain contexts.

Common Law Marriage

A legally recognized union that occurs when a couple lives together for a period of time and holds themselves out to friends, family, and the community as being married, but without ever going through a formal ceremony or obtaining a marriage license.

Domestic Partner Benefits

Employee benefit policies that extend health insurance and other perks to domestic partners, akin to those traditionally reserved for spouses.

Case Management

A collaborative process of assessment, planning, facilitation, and advocacy for options and services to meet an individual's holistic needs through communication and available resources to promote quality cost-effective outcomes.