Blurbery Retailers Has Departments a and B with Departmental Income

question 41

Multiple Choice

Blurbery Retailers has departments A and B with departmental income statements as follows.

Blurbery is considering eliminating Department B. Of the total 'other expenses' for the two departments of $44 000, $32 000 are fixed general overhead expenses and the rest are variable expenses based on 10% of sales. What is the present departmental contribution of Department B?

• A) $28 000
• B) ($3000)
• C) $11 000
• D) $23 000

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Definitions:

Theoretical Result

An outcome derived from abstract principles and reasoning, often without practical application or empirical testing.

Classical

Classical refers to the established theories and principles that have withstood the test of time, often foundational in fields like physics, music, and literature.

Probability

The likelihood that a particular event will happen, often expressed as a fraction or percentage reflecting the ratio of the occurrences of an event to the total number of possible outcomes.

Meeting

A gathering of two or more people that is conducted for the purpose of achieving a common goal through verbal interaction, such as sharing information or reaching agreement.