North Division has the following information:
Sales $1,200,000
Variable expenses 640,000
Fixed expenses 620,000
If this division is eliminated, the fixed expenses will be allocated to the company's other divisions. What is the incremental effect on net income if the division is dropped?
a) $580,000 increase
b) $620,000 decrease
c) $60,000 increase
d) $560,000 decrease
d) $560,000 decrease
You might also like to view...
Which of the following is a characteristic of task analysis?
A. It does not require knowledge of the work environment. B. It is independent of time constraints or deadlines. C. It results in an assessment of employees' readiness for training. D. It is usually conducted along with person analysis. E. It helps in determining individuals' needs for training.
Which of the following relates to a mechanic's lien?
a. Statutes of limitations b. Recordation is required c. A statutory lien d. All of these