A Segment Has the Following Data $$\begin{array} { l r } \text { Sales } & \$ 700,000 \\\text { Variable expenses } & 300,000 \\\text { Fixed expenses } & 550,000\end{array}$$

question 20

Multiple Choice

A segment has the following data: $$\begin{array} { l r } \text { Sales } & \$ 700,000 \\\text { Variable expenses } & 300,000 \\\text { Fixed expenses } & 550,000\end{array}$$ What will be the incremental effect on net income if this segment is eliminated, assuming the fixed expenses will be allocated to profitable segments?

• A)$400,000 increase
• B)$400,000 decrease
• C)$5,000 decrease
• D)Cannot be determined from the data provided.

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Definitions:

Key People

Essential individuals within an organization or project who hold critical roles, expertise, or influence that significantly contribute to success.

Monitoring Task Accomplishments

The process of observing and recording the progress made on specific tasks within a project or operation.

Corrective Action

A process or an action taken to fix a detected problem or deviation from a set standard in an organization.

Uncertain Future

pertains to the unpredictability of events, developments, or outcomes in times ahead.