Department M Has a Gross Profit of $50 000, Direct

question 29

Multiple Choice

Department M has a gross profit of $50 000, direct departmental expenses of $28 000 and allocated expenses of $26 000, giving it a net loss of $4 000. What would be the effect on the total organisation's profit if Department M were closed?

• A) Profits would decrease $2 000
• B) Profits would increase by $4 000
• C) Profits would decrease by $22 000
• D) Profits would increase by $26 000

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Definitions:

Strikes

A form of protest where workers stop working in an attempt to force an employer to comply with their demands, such as higher pay or improved working conditions.

Defensive Lockout

A tactic used by employers to prevent workers from working during a labor dispute to protect the company's assets or interests.

Picketing

A form of protest by workers outside a place of employment or another significant location to express grievances or demand rights, often during strikes or labor disputes.

Boycott

A form of protest in which individuals or groups refrain from using, buying, or dealing with products or services of a company as an act of criticism or demand for change.