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:

Organizational Resources

Refers to the assets, including human, financial, and physical, that an organization can utilize to achieve its objectives.

Customer Group

A specific segment of the market targeted by a company's products, services, or marketing efforts.

Strategic Leadership

Leadership that focuses on long-term success through visioning, planning, and fostering an environment conducive to adaptation, innovation, and growth.

Guardian of Trade-offs

A role or principle involving the management and balance of competing interests or resources in decision-making processes.