A Portion of the Divisional Income Statement for the Year

question 97

Essay

A portion of the divisional income statement for the year just ended is presented below in condensed form.

The operating expenses of Department F include $16,000 for direct expenses.
It is estimated that the discontinuance of Department F would not have affected the sales of the other departments nor have reduced the indirect expenses of the business.Assuming the accuracy of these estimates,determine the effect (increase or decrease and amount)on the income from operations of the business if Department F had been discontinued.

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Definitions:

Korotkoff Sounds

Sounds heard through a stethoscope during blood pressure measurements, associated with changes in blood flow.

Diaphragm

A dome-shaped muscular partition separating the thorax from the abdomen, playing a major role in breathing.

Stethoscope

A medical instrument used to listen to the internal sounds of the body, such as the heart and lungs.

Radial Artery

An artery located in the forearm that is commonly used for assessing the pulse and for arterial blood gas sampling.