Business, 17.11.2020 23:40 genny42

2. Product (Segment) elimination decision. The Kelsh Company has two divisions-- North and South. The divisions have the following revenues and expenses:
North South
Sales $900,000 $800,000
Variable expenses 450,000 300,000
Traceable fixed expenses 260,000 210,000
Allocated common corporate expenses 240,000 190,000
Net operating income (loss) ($50,000) $100,000
Management at Kelsh is pondering the elimination of the North Division. If the North Division were eliminated, its traceable fixed expenses could be avoided. The total common corporate expenses would be unaffected.
Given this data, the elimination of the North Division would result in an overall company
operating income of:
A) $50,000.
B) ($140,000).
C) $100,000.
D) $150,000.

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 16:30

On april 1, the cash account balance was $46,220. during april, cash receipts totaled $248,600 and the april 30 balance was $56,770. determine the cash payments made during april.

Answers: 1

Answer

Business, 23.06.2019 01:00

Why does the downward-sloping production possibilities curve imply that factors of production are scarce?

Answers: 1

Answer

Business, 23.06.2019 01:00

Apopular low-cost airline, parson corp., has gone out of business. although the service and price provided by the airline was what customers wanted, the larger airlines were able to drive the low-cost airline out of business through an aggressive price war. which component of the competitive environment does this illustrate?

Answers: 3

Answer

Business, 23.06.2019 02:00

Andrea's opportunity cost rate is 12 percent compounded annually. how much must he deposit in an account today if he wants to receive $2,100 at the beginning of each of the next seven years? use the equation method to determine the amount.

Answers: 3

Answer

You know the right answer?

2. Product (Segment) elimination decision. The Kelsh Company has two divisions-- North and South....

Questions