Weston Corporation Is Considering Eliminating a Department That Has a Contribution

question 111

Multiple Choice

Weston Corporation is considering eliminating a department that has a contribution margin of $70,000 and $140,000 in fixed costs. Of the fixed costs, $100,000 cannot be avoided. The effect of eliminating this department on Weston's overall net operating income would be:

• A)an increase of $70,000.
• B)a decrease of $70,000.
• C)an increase of $30,000.
• D)a decrease of $30,000.

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Definitions:

Rational Emotive Behavioral

A comprehensive, active-directive, philosophically and empirically based psychotherapy which focuses on resolving emotional and behavioral problems and disturbances.

Irrational

Lacking in reason or logic; thoughts, beliefs, or actions that do not align with rational judgment.

Self-Defeating Beliefs

Negative thoughts and perceptions that one holds about oneself that hinder personal growth or success.

University Counseling Centers

Institutions within universities that provide mental health services, guidance, and support to students.