Kimble Industries Production Division Reported a Net Operating Loss of $500,000

question 64

Multiple Choice

Kimble Industries production division reported a net operating loss of $500,000 in 2014.Included in that amount were common fixed corporate expenses of $720,000 that were allocated to divisions based on segment gross profit.The division's segment margin was

• A) $220,000.
• B) $500,000.
• C) $222,000.
• D) $550,000.

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Definitions:

Opportunity Cost

The bypass of potential advantages from different routes when a specific option is taken.

Agricultural Production

The process and methods used in the cultivation of plants and raising of animals for food, fiber, biofuel, medicinal plants, and other products used to sustain and enhance human life.

Labor Force

The total number of people employed and unemployed, seeking employment in an economy.

Marginal Cost

The additional expense incurred from creating one more unit of a product, highlighting how production costs change with output levels.