The Corporation Has Three Departments,Widgets,Ridgets and Digits The Corporation Is Considering Eliminating the Widgets Department

question 38

Multiple Choice

The Corporation has three departments,Widgets,Ridgets and Digits.At the end of the accounting period the following information is available. $\begin{array}{|l|r|r|r|r|}\hline & \text { Widgets } & \text { Ridgets } & \text { Digits } & \text { Total } \\\hline \text { Net Sales } & \$ 5000 & \$ 9000 & \$ 6000 & \$ 20000 \\\hline \text { Cost of sales }& \underline{3000} & \underline{400} & \underline{2400} & \underline{900} \\\hline \text { Gross Profit }&\$ 2000 & 4500 & \$ 3600 & \$ 10100 \\\hline \text { Direct Operating Exps }&\underline{500} & \underline{1000} & \underline{1500} & {3000} \\\hline \text { Departmental Margin }&1500 & \$ 3500 & \$ 2100 & \$ 7100 \\\hline \text { Indirect Operating Exps }&& & & \underline{3000} \\\hline \text { Profit }&& & & \$ 4100 \\\hline \end{array}$ The Corporation is considering eliminating the Widgets department.What will be the change in The Corporation's profit if the Widgets department is eliminated? Assume that all indirect expenses are unavoidable and that all other circumstances are held constant.

• A)$500 fall
• B)$1500 fall
• C)$1000 fall
• D)$1500 increase

---

Definitions:

ABC

In cognitive behavioral therapy, this stands for Antecedent, Behavior, and Consequence, a framework for understanding how thoughts influence behaviors and emotions.

Therapeutic Relationship

A professional and collaborative connection between a therapist and a client designed to facilitate healing and personal growth.

Unconditional Acceptance

The practice of accepting and supporting someone without any conditions or limitations.

Empathic

Relating to the psychological ability to understand and share the feelings of another person.