A Segment Has the Following Data

question 89

Multiple Choice

A segment has the following data:

What will be the incremental effect on net income if this segment is eliminated, assuming the fixed costs will be allocated to profitable segments?

• A) $284,500 increase
• B) $386,000 decrease
• C) $264,000 decrease
• D) $365,500 decrease

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Definitions:

Philosophy of Management

The set of beliefs and values that influence how an organization is managed and how decisions are made.

Government Sectors

The part of an economy or employment composed of government agencies and public services.

Economy

The system by which goods and services are produced, distributed, and consumed in a society, encompassing various sectors and industries.

Essential Infrastructure

Fundamental facilities and systems serving a country, city, or area, including the services and facilities necessary for its economy to function.