DM Corporation Has Provided You with the Following Budgeted Income

question 142

True/False

DM Corporation has provided you with the following budgeted income statement for one of their products:
$$\begin{array} { | l | r | } \hline \text { Sales } & \$ 650,000 \\\hline \text { Variable Expenses } & 455,000 \\\hline \text { Contribution margin } & \$ 195,000 \\\hline \text { Fixed Expenses } & 240,000 \\\hline \text { Operating income } & ( \$ 45,000 ) \\\hline\end{array}$$
DM Corporation believes that 70% of the fixed costs would be avoidable if the product line was dropped. Based on impact to the company operating income, DM should NOT drop the product line.

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Event Scope Forecasts

Projected analyses that predict the extent or magnitude of events, often used in planning and risk assessment.

Environment

The surrounding physical, natural, social, and cultural conditions in which an individual, organization, or community operates.

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Predictions or estimates of future events or trends, typically based on analysis of data.

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The practice of collecting information and attempting to spot a pattern, often used in financial markets, business intelligence, and research fields.