Beryl Enterprise Is Considering Closing Down Its Jamaica Location

question 84

Multiple Choice

Beryl Enterprise is considering closing down its Jamaica location.This location presently has a contribution margin of $1,000,000.Overhead allocated to it is $2,500,000,of which $250,000 cannot be eliminated.If this location were to discontinue operations,by what amount would Beryl's pre-tax income increase?

• A) $250,000.
• B) $1,000,000.
• C) $1,250,000.
• D) $1,500,000.

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