A Segment of a Business Reported a Contribution Margin of $33,000

question 124

Multiple Choice

A segment of a business reported a contribution margin of $33,000 and controllable fixed costs of
$14,000. If the segment is eliminated, the company-wide net income would be

• A)$14,000 higher.
• B)$33,000 lower
• C)$19,000 lower.
• D)$19,000 higher.

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Definitions:

US Dollars

The currency of the United States of America, widely used as a standard of exchange in international markets.

Forward Market

A market where individuals can engage in agreements to purchase or sell assets at a predetermined date and price in the future.

Foreign Exchange Currency Risk

The potential for financial losses due to changes in the exchange rate between currencies.

Canadian Dollar

The official currency of Canada, represented by the symbol CAD or C$.