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

question 37

Multiple Choice

A segment of a business reported a contribution margin of $33,000 and common costs of $11,000. If the segment is eliminated, the company-wide net income would be

• A)$11,000 higher.
• B)$33,000 lower.
• C)$33,000 higher.
• D)$22,000 higher.

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Definitions:

Reasonable Notice

The period of advance warning that an employer must give an employee before terminating their employment or that a tenant must receive before eviction, the length of which may vary based on agreements, laws, or contracts.

Severance Pay

Severance pay is compensation given to an employee who is dismissed from their job, often based on the length of employment and the terms of their employment contract.

Legal Action

The process of pursuing remedies or enforcement through the court system, including lawsuits or litigation.

Collective Agreement

A written contract negotiated between an employer and a union representing the employees, detailing workers' terms and conditions of employment.