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

question 58

Short Answer

Kimble Industries production division reported a net operating loss of $500,000 in 2016.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.$220,000.
d.$500,000.

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Definitions:

Expectancy Theory

A motivational theory suggesting that an individual’s motivation is an outcome of how much an individual wants a reward, the assessment of the likelihood that the effort will lead to expected performance, and the belief that the performance will lead to a reward.

Equity Theory

A theory in social psychology that explains how individuals perceive fairness in the distribution of resources and rewards, influencing their motivation and satisfaction.

Goal-Setting Theory

An organizational framework positing that specific and challenging goals, along with appropriate feedback, facilitate improved worker performance.

Negative Reinforcement

Strengthens a behaviour by making the avoidance of an undesirable consequence contingent on its occurrence.