One Department in a Company Had a Contribution Margin of $15,000

question 48

Multiple Choice

One department in a company had a contribution margin of $15,000 and a net loss from operations of $2,000.The indirect expenses allocated to this department would have been incurred whether or not the department existed.If this department had been eliminated,the company's reported net income would have been

• A) $2,000 higher.
• B) $15,000 lower.
• C) $13,000 lower.
• D) the same with or without the department.

---

Definitions:

Low-cost Electricity

Electricity provided at a lower price, typically achieved through efficient production methods or subsidies.

Economic Competition

A condition in markets where businesses or sellers independently strive for consumer's dollars by offering the best possible terms, leading to efficient resource allocation.

Command Systems

Economic systems where the government controls key sectors of the economy, determining what goods are produced, their prices, and distribution.