A Company Expects Its Three Departments to Yield the Following

question 96

Essay

A company expects its three departments to yield the following income for next year. $\begin{array}{llll} & \text { Dept. X } & \text { Dept. Y } & \text { Dept. Z } \\\text { Sales } & \$ 94,000 & \$ 15,000 & \$ 70,000 \\\text { Expenses } & & &\\\text { Avoidable } & 71,000 & 2,000 & 52,000 \\\text { Unavoidable } & 4,000 & 7,000 & 20,000\\\text { Total expenses } & 75,000 & 9,000 & 72,000 \\\text { Net income (loss) } & \$ 19,000 & \$ 6,000 & \$(2,000)\end{array}$
Required: Compute the following independent calculations.
(1) The effect on total company income if Dept. X is eliminated.
(2) The effect on total company income if Dept. Y is eliminated.
(3) The effect on total company income if Dept. Z is eliminated.
(4) Should any of these departments be eliminated? Why of why not?

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Definitions:

Habituation Tasks

Experimental procedures used to measure how the frequency or intensity of a subject's response decreases when a stimulus is presented repeatedly.

Unchanging Stimulus

A constant and repetitive sensory input that does not vary over time.

Communicate

The act of sharing or exchanging information, ideas, or feelings through speech, writing, gestures, or other modes.

Adaptive Ways

Strategies or mechanisms that individuals use to adjust to new conditions or environments in a positive manner.