A Portion of the Divisional Income Statement for the Year

question 4

Essay

A portion of the divisional income statement for the year just ended is presented below in a condensed form. $$\begin{array} { l r } & \text { Department F } \\\text { Net sales } & \$ 93,800 \\\text { Cost of goods sold } & 72,400 \\\text { Gross profit } & \$ 21,400 \\\text { Operating expenses } & 28,900 \\\text { Loss from operations } & \$ ( 7,500 ) \\\hline\end{array}$$ ​
The operating expenses of Department F include $16,000 for direct expenses.
It is estimated that the discontinuance of Department F would not have affected the sales of the other departments nor have reduced the indirect expenses of the business.Assuming the accuracy of these estimates, determine the effect (increase or decrease and the amount) on the operating income of the business if Department F had been discontinued.

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Definitions:

Electronic Registration System

A digital system used to record and manage the ownership and transactions of securities or properties.

Right of Way of Necessity

A legal grant allowing one to cross land owned by another, typically when it's essential for access to one's own land and no alternative route exists.

Express Easement

A right granted by a landowner for the use of a portion of their property for a specific purpose, explicitly stated in writing.

Common Elements

are the parts of a condominium or co-operative property that are shared among all owners, such as lobbies, gyms, and pools.