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:

Horizontal Networks

A type of organizational structure where teams or individuals work across similar levels, promoting collaboration and communication.

Vertical Networks

Communication and hierarchical structures within an organization where information and directives flow up and down between different levels of authority.

Interpersonal Communication Network

A web of personal contacts and relationships used to communicate information, ideas, and messages among people.

Communication Flows

The direction and path that information travels in an organization among its members.