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:

Oral Contraceptives

A method of birth control in pill form that is taken orally to prevent pregnancy, typically by altering hormone levels to prevent ovulation.

Abortion Procedure

A medical or surgical intervention carried out to terminate a pregnancy.

Intrauterine Devices

Long-term, reversible methods of contraception that a healthcare provider inserts into the uterus to prevent pregnancy.

IUDs

Intrauterine devices, a form of long-term birth control placed inside the uterus to prevent pregnancy.