Division K Has a Contribution Margin of $100 000 and Fixed

question 23

Multiple Choice

Division K has a contribution margin of $100 000 and fixed costs traceable to the division of $25 000 mean it is making a divisional margin of $75 000.However after the allocation of $90 000 of common costs,which would not be saved if the division were to be closed,it is making a loss of $15 000.Assuming all other factors are equal,if the division were closed the effect on the overall profit of the organisation would be:

• A)an increase of $15 000
• B)an increase of $75 000
• C)a decrease of $90 000
• D)a decrease of $75 000

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Definitions:

Arraignment

The initial court proceeding where a defendant is formally charged with a crime, informed of their rights, and asked to enter a plea.

Plea Bargaining

A legal negotiation in which a defendant agrees to plead guilty to a lesser charge in exchange for a more lenient sentence or the dropping of other charges.

Cyber Crime

Criminal activities carried out by means of computers or the internet, including hacking, fraud, and identity theft.

Identity Theft

The fraudulent acquisition and use of a person's private identifying information, usually for financial gain.