A Segment Has the Following Data: What Will Be

question 56

Multiple Choice

A segment has the following data: What will be the incremental effect on net income if this segment is eliminated, assuming the fixed costs will be allocated to profitable segments?

• A)$15,000 increase
• B)$155,000 decrease
• C)$140,000 decrease
• D)$145,000 decrease

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Definitions:

Department Store Buyers

Professionals responsible for selecting and purchasing merchandise for resale in department stores, often specializing in specific categories of goods.

Formula Presentation Approach

A structured method of presenting information or a proposal, often using a predefined formula or template.

Stage Productions

The process and execution of presenting a performance on stage to an audience, involving actors, directors, and crew.

Automation

The use of technology or machines to perform tasks with minimal human intervention, enhancing efficiency and accuracy.