The Following Information Is Available for Discounted Supplies Inc Fixed Costs Controllable By

question 19

Multiple Choice

The following information is available for Discounted Supplies Inc.and its two divisions,Durable Goods and Nondurable Goods.
$$\begin{array} { l l l } &\text { Whole } & \text { Durable } & \text { Nondurable } \\&\text { Company } & \text { Goods } & \text { Goods } \\\hline \text { Net sales }&\$ 100,000 & \$ 60,000 & \$ 40,000\end{array}$$
Fixed costs controllable by
$\begin{array}{lll}\text { Division Manager }&16,500 & 12,500 & 4,000 \\\text { Fixed costs controlled by others }&8,000 & 5,000 & 3,000\end{array}$
Variable costs:
$\begin{array} { l } \text { Cost of merchandise sold}&24,500&17,500&7,000 \\ \text {Operating expenses }&16,400&10,000&6,400 \\ \text {Unallocated costs }& 1,000\\\end{array}$

What is the income before taxes for the company as a whole?

• A) $15,000
• B) $29,600
• C) $33,600
• D) $34,600

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Definitions:

Developmental Strategies

Planned efforts to improve individuals, groups, or organizational effectiveness, growth, and performance through learning and development opportunities.

Promotion Decisions

The process of evaluating and advancing employees within a company based on their performance, skill set, and readiness for more responsibility.

Repetitive Work

Tasks that involve the same sequences of actions being performed repeatedly over an extended period.

Meaningful Job

A position that provides the employee with a sense of purpose, impact, and fulfillment.