A Study Has Been Conducted to Determine If One of the Departments

question 45

Multiple Choice

A study has been conducted to determine if one of the departments in Parry Company should be discontinued.The contribution margin in the department is $50,000 per year.Fixed expenses charged to the department are $65,000 per year.It is estimated that $40,000 of these fixed expenses could be eliminated if the department is discontinued.These data indicate that if the department were discontinued,the company's overall operating income per year would change by how much?

• A) An increase of $10,000.
• B) A decrease of $10,000.
• C) An increase of $25,000.
• D) A decrease of $25,000.

Understand the impact of social norms on professional communication.

Appreciate the differences in time perception and its implications on professional behavior in different cultures.

Understand the features and importance of enterprise social media platforms in organizational communication.

Evaluate the effectiveness of computer-mediated communication versus face-to-face communication.

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Definitions:

Preferred Stock Dividends

Payments made to holders of preferred stock, often at a fixed rate, which are prioritized over dividends to common stockholders.

Inventory Turnover Rate

A metric that measures how quickly a company sells its inventory within a given period, calculated by dividing cost of goods sold by average inventory.

Office Furniture

Items used in an office setting for the purpose of work, including desks, chairs, filing cabinets, and bookshelves.

Marketable Securities

Liquid financial instruments that can be quickly converted into cash at a reasonable price, such as stocks and bonds.