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

question 21

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:

Nonconformity

The failure of a product or service to meet specified standards or expectations.

Revoke Acceptance

The act of retracting approval of a contract or agreement, particularly in circumstances where the offered goods or services are found to be substantially non-conforming.

Assurances

Promises or declarations intended to give confidence or certainty about certain outcomes or behaviors.

Consequential Damages

Additional losses or damages that result indirectly from a breach of contract, not caused directly by the breach itself.