A Segment of a Business Shows a Contribution Margin of $30,000

question 65

True/False

A segment of a business shows a contribution margin of $30,000 but incurs controllable fixed costs of $26,000. Eliminating that segment will result in an increase in company-wide net income.

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Definitions:

Mitochondrion

A cell organelle that generates most of the cell's supply of adenosine triphosphate (ATP), used as a source of chemical energy.

Nucleus

A membrane-bound organelle in eukaryotic cells that contains most of the cell's genetic material, organized as multiple long linear DNA molecules in complex with a large variety of proteins.

Golgi Body

An organelle within eukaryotic cells that modifies, sorts, and packages proteins and lipids for transport out of the cell.

Myelinated Neurons

Myelinated neurons are nerve cells covered with a fatty substance called myelin, which increases the speed at which electrical signals travel along the nerve fibers.