A Company Expects Its Three Departments to Yield the Following

question 126

Multiple Choice

A company expects its three departments to yield the following income for next year:
$\begin{array}{lrrr} & \text { Dept. Q } & \text { Dept. R } & \text { Dept. S } \\\text { Sales } & \$ 6,000 & \$ 7,000 & \$ 8,000\\ \text { Expenses }\\\text { Avoidable } & 2,000 & 3,000 & 4,000 \\\text { Unavoidable } & 1,500 & 2,500 & 4,500 \\ \text { Total expenses } & 3,500 & 5,500 & 8,500 \\ \text { Net income(loss) } & \$ 2,500 & \$ 1,500 & \$(500) \end{array}$
Compute the change to the company's total net income if Dept.S is eliminated.

• A) $500 increase
• B) $500 decrease
• C) $4,000 increase
• D) $4,000 decrease
• E) $3,500 decrease

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Definitions:

Positively Correlated

When two variables are positively correlated, it means that as the value of one variable increases, the value of the other variable tends to increase as well.

Aggression

Refers to behaviors or actions, whether physical or verbal, intended to harm, intimidate, or exert dominance over others.

Temperature

A physical quantity that expresses hot and cold, measured typically in degrees Celsius, Fahrenheit, or Kelvin.

Percentile

A statistical measure indicating the value below which a given percentage of observations in a group falls, often used to compare scores across a population.