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:

Shareholders

Individuals or entities that own shares in a corporation, giving them rights to dividends and a stake in the company's equity.

Majority Vote

A voting rule used in decision-making processes where more than half of the votes cast by eligible participants is required to make a decision or elect a candidate.

Two-Thirds Vote

A voting requirement where two-thirds of the members present must agree in order for a proposal or motion to pass.

Unanimous Vote

A unanimous vote occurs when all members of a decision-making body agree on a proposal or decision, indicating full support or approval.