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Selzone Corporation Operates Two Divisions with the Following Operating Results

question 64

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Selzone Corporation operates two divisions with the following operating results from last year: Selzone Corporation operates two divisions with the following operating results from last year:    Management is considering whether the Southern Division should be dropped since it incurred an operating loss last year. Allocated common fixed costs would continue for Selzone Corporation whether the division is dropped or not. If the Southern Division had been dropped at the beginning of last year, what would the total operating income for Selzone Corporation have been for the year? A)  $15,000 B)  $75,000 C)  $45,000 D)  $90,000
Management is considering whether the Southern Division should be dropped since it incurred an operating loss last year. Allocated common fixed costs would continue for Selzone Corporation whether the division is dropped or not.
If the Southern Division had been dropped at the beginning of last year, what would the total operating income for Selzone Corporation have been for the year?


Definitions:

Human Resource Management

A methodical plan for the efficient management of personnel within a company or organization aimed at achieving a competitive edge in the business.

Acquisition

The process by which one company purchases most or all of another company's shares to gain control of that company.

Organizational Success

The achievement of the goals and objectives set by an organization, often measured by financial performance, market share, or the realization of its strategic aims.

People-centered Practices

Organizational strategies and policies that emphasize the importance of human resources, employee well-being, and fostering a positive work environment.

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