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

question 95

Multiple Choice

Consider the following portion of a segmented income statement for the year just ended. Assume that the 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

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Definitions:

Bulimia Nervosa

An eating disorder marked by periods of binge eating followed by inappropriate compensatory behaviors such as vomiting, fasting, or excessive exercise to prevent weight gain.

Binge Ate

The act of eating large quantities of food in a short period of time, often associated with a lack of control over eating.

Disgusting

A strong emotional response of revulsion or profound disapproval elicited by something unpleasant or offensive.

Compensatory Behaviors

Actions taken to counteract or make up for the effects of undesired behaviors, often seen in eating disorders to manage weight or guilt.