When MrDing L

question 111

Essay

When Mr.Ding L.Berry,president and chief executive of Berry,Inc. ,first saw the segmented income statement below,he flew into his usual rage: "When will we ever start showing a real profit? I'm starting immediate steps to eliminate those two unprofitable lines!" *These traceable expenses could be eliminated if the product lines to which they are traced were discontinued.
Required:
Recommend which segments,if any,should be eliminated.Prepare a report in good form to support your answer.
A segmented income report,without the allocation of common fixed expenses,will provide the basis for deciding which segments to drop.

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Definitions:

Industrial Pollution

The release of harmful substances into the environment as a result of manufacturing or processing activities.

Cap And Trade

An environmental policy tool that sets a limit on emissions and allows companies to buy and sell permits to stay within those emission limits.

Emission Permits

Emission permits are allowances given to companies, allowing them to release a specific amount of pollutants into the environment, used as a tool for regulating environmental impacts.

Environmental Quality

The condition of the natural environment and its ability to support life and activities, often measured by factors such as air and water purity, and biodiversity levels.