deci ontinue 5. Party Supply is trying its costume segment. The information shown is available for Party Supply's business segments. Assume that neither the Direct fixed costs nor the Allocated common fixed whether or no costs may be eliminated, but will be allocated to the two remaining segments. Costumes Party Supplies Floral Decorations Sales $160,000 $110,000 $210,000 Variable costs Contribution margin Direct fixed costs 84,000 76,000 50,000 60,000 20,000 120,000 90,000 50,000 30,000 $ (4,000) 25,000 30,000 $ 35,000 Allocated common fixed costs 25,000 $ 15,000 Net income a. If costumes are dropped, what change will occur to profit?

deci ontinue 5. Party Supply is trying its costume segment. The information shown is available for Party Supply's business segments. Assume that neither the Direct fixed costs nor the Allocated common fixed whether or no costs may be eliminated, but will be allocated to the two remaining segments. Costumes Party Supplies Floral Decorations Sales $160,000 $110,000 $210,000 Variable costs Contribution margin Direct fixed costs 84,000 76,000 50,000 60,000 20,000 120,000 90,000 50,000 30,000 $ (4,000) 25,000 30,000 $ 35,000 Allocated common fixed costs 25,000 $ 15,000 Net income a. If costumes are dropped, what change will occur to profit?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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