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Consider the Following Portion of a Segmented Income Statement for the Year

question 20

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Consider the following portion of a segmented income statement for the year just ended.Assume fixed expenses of Division X include $30,000 of direct expenses and that the discontinuance of the department will not affect the sales of the other departments nor reduce the common expenses.
Consider the following portion of a segmented income statement for the year just ended.Assume fixed expenses of Division X include $30,000 of direct expenses and that the discontinuance of the department will not affect the sales of the other departments nor reduce the common expenses.     What is X's divisional segment margin? A)  ($10,000)  B)  $40,000 C)  $10,000 D)  $100,000 What is X's divisional segment margin?

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Definitions:

Economies of Scale

Cost advantages that businesses obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Benefits Package

A collection of non-wage compensations provided to employees in addition to their salaries or wages. These can include health insurance, pension plans, and vacation time.

Mandatory Benefits

Compulsory employment advantages prescribed by law that an employer must provide to employees, such as social security, workers' compensation, and leave entitlements.

Employment Assistance Programs

Workplace initiatives designed to help employees deal with personal problems that might adversely affect their job performance, health, and well-being.

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