REQUIRED:How much of the common fixed cost of $200,000 can be avoided by eliminating the bar? Choose the answer and explain.a. None of itb. Some of itc. All of it Assume that Leisure Group prepared its segmented income statement as shown.Income StatementLeisure GroupBarGroup$800,000RestaurantSales$100,000$700,000Variable Costs310,00060,000250,000см490,00040,000450,000Traceable FC246,00026,000220,000Segment Margin244,00014,000230,000Common Costs200,000Profit44,000

Common fixed cost means the fixed cost that cannot be directly linked to a particular activity or…

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common fixed cost of $200,000 can be avoided by eliminating the ba

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

REQUIRED:

How much of the common fixed cost of $200,000 can be avoided by eliminating the bar? Choose the answer and explain.
a. None of it
b. Some of it
c. All of it

Assume that Leisure Group prepared its segmented income statement as shown.
Income Statement
Leisure Group
Bar
Group
$800,000
Restaurant
Sales
$100,000
$700,000
Variable Costs
310,000
60,000
250,000
см
490,000
40,000
450,000
Traceable FC
246,000
26,000
220,000
Segment Margin
244,000
14,000
230,000
Common Costs
200,000
Profit
44,000

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