Freedom Company Has Three Departments Required:
A) Compute the Operating Income for Freedom Company

question 8

Essay

Freedom Company has three departments.Data for the most recent year are presented below:
$\begin{array}{llll}&\text { Dept. } X&\text { Dept. } Y&\text { Dept. } Z\\\text { Sales } & \$ 400 & \$ 200 & \$ 80 \\\text { Variable expenses } & 128 & 52 & 34 \\\text { Unavoidable fixed expenses } & 96 & 52 & 12 \\\text { Avoidable fixed expenses } & 116 & 104 & 54\end{array}$
Required:
A) Compute the operating income for Freedom Company.
B) Compute the contribution margin for each department.
C) Compute the operating income for each department.
D) Which department(s) should be eliminated? Why?

• A) Compute the operating income for Freedom Company.
• B) Compute the contribution margin for each department.
• C) Compute the operating income for each department.
• D) Which department(s) should be eliminated? Why?

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Definitions:

Lateral

Describing a position or direction towards the side of the body, away from the midline.

Medial

A term denoting a position closer to the midline of the body or a structure.

Retractable Penis

A characteristic of certain animals where the penis can be withdrawn into the body when not in use.

External Urogenital Orifice

The external opening of the urinary tract and, in females, the reproductive tract, which can be part of the vulva in females or the urogenital opening in males.