The Corporation Has Three Departments, Widgets, Ridgets and Digits

question 31

Multiple Choice

The Corporation has three departments, Widgets, Ridgets and Digits. At the end of the accounting period the following information is available.

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

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