A Study Has Been Conducted to Determine If One of the Departments

question 214

Multiple Choice

A study has been conducted to determine if one of the departments in Carry Corporation should be discontinued. The contribution margin in the department is $80,000 per year. Fixed expenses charged to the department are $95,000 per year. It is estimated that $50,000 of these fixed expenses could be eliminated if the department is discontinued. These data indicate that if the department is discontinued, the yearly financial advantage (disadvantage) for the company would be:

• A) ($15,000)
• B) $15,000
• C) ($30,000)
• D) $30,000

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Definitions:

American Diplomacy

The conduct by government officials of negotiations and other relations between nations, particularly focusing on the United States' interactions with other countries.

North Korean Regime

The authoritarian government of North Korea, characterized by centralized control under the leadership of the Kim dynasty, and noted for its isolationist policies and human rights issues.

Major Backer

A significant supporter or sponsor, often financially, of a cause, project, or individual, typically within the context of politics or business.

Governmental Actors

Individuals or entities that operate within the governmental framework to influence policies, legislation, or governance.