A Segment of a Business Reported a Contribution Margin of $36,000

question 109

Multiple Choice

A segment of a business reported a contribution margin of $36,000 and common costs of $12,000.If the segment had been eliminated,the company-wide net income would have been

• A) $12,000 higher.
• B) $24,000 lower.
• C) $36,000 lower.
• D) $24,000 higher.

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Definitions:

Justice Approach

A way to base decisions on the basis of fairness

Ethical Decision-Making

The procedure of scrutinizing and opting for alternatives that adhere to principles of ethics.

Rights Approach

A decision-making method based on using moral principles that least infringe on the entitlements of others.

Moral Principles

Fundamental beliefs about what is right and wrong that guide an individual's behavior and decision-making.