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:

Equity Growth Fund

A mutual fund that invests primarily in stocks with the goal of capital appreciation rather than income.

Sector Fund

A mutual fund that invests solely in businesses operating in a specific industry or economic sector, aiming to capture sector-specific growth.

Equity Trusts

Investment funds that hold a diversified portfolio of equities or stocks, managed by a trustee for the benefit of its beneficiaries.

Mortgage Trusts

Investment funds or trusts that pool investments in mortgage loans or mortgage-backed securities.