Selzone Corporation Operates Two Divisions with the Following Operating Results

question 77

Multiple Choice

Selzone Corporation operates two divisions with the following operating results from last year: $\begin{array}{|l|c|c|c|}\hline &\text { Northern Division } & \text { Southern Division } & \text { Total } \\\hline \text { Sales } & \$ 600,000 & \$ 300,000 & \$ 900,000 \\\hline \text { Variable costs } & \$ 310,000 & \$ 200,000 & \$ 510,000 \\\hline \text { Contribution margin } & \$ 290,000 & \$ 100,000 & \$ 390,000 \\\hline \text { Avoidable fixed costs } & \$ 110,000 & \$ 70,000 & \$ 180,000 \\\hline \text { Allocated common fixed costs } & \$ 90,000 & \$ 45,000 & \$ 135,000 \\\hline \text { Operating income (loss) } & \$ 90,000 & \begin{array}{l}\$ \\(15,000) \end{array} & \$ 75,000 \\\hline\end{array}$ Management is considering whether the Southern Division should be dropped since it incurred an operating loss last year.Allocated common fixed costs would continue for Selzone Corporation whether the division is dropped or not.
If the Southern Division had been dropped at the beginning of last year,what would the total operating income for Selzone Corporation have been for the year?

• A)$15,000
• B)$30,000
• C)$45,000
• D)$90,000

Understand the impact of the Charter of Rights and Freedoms on human resource and industrial relations.

Recognize the objectives and protections offered by the Canadian Human Rights Act.

Identify what constitutes legal direct and indirect discrimination.

Grasp the concept of bona fide occupational requirements and their applications.

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Definitions:

Natural Resources

Natural resources are materials or substances that occur in nature and can be used for economic gain, such as forests, minerals, and water.

Customer Tastes

Refers to the preferences, attitudes, and beliefs of consumers that influence their buying behavior for certain products and services.

Technology-Related

Pertaining to or involving technology, especially relating to advancements or applications in the field.

Commissions Earned

Income received by salespersons or brokers as a percentage of the sales they make, serving as motivation and compensation for their sales efforts.