A Portion of the Divisional Income Statement for the Year

question 123

Essay

A portion of the divisional income statement for the year just ended is presented below in condensed form.
The operating expenses of Department B include $50,000 for direct expenses.
It is estimated that the discontinuance of Department B 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 B had been discontinued.

---

Definitions:

Intimate Friendships

Deep and close relationships characterized by a high level of trust, emotional support, and understanding, often developing over time.

Middle Childhood

A developmental stage that ranges approximately from 6 to 12 years of age, characterized by increased physical, cognitive, and social abilities.

Peer Group

A social group of people, typically of similar age, background, or social status, who influence each other's behaviors and attitudes.

Self-Control

The ability to regulate one's emotions, thoughts, and behaviors in the face of temptations and impulses.