Market has three divisions (Chad, Talbot, and Heather) with the following information Chad Talbot Heather Total $60,000 $50,000 $40,000 $150,000 $35.000 $28.000 $30.000 $93.000 $25,000 $22.000 $10,000 $57.000 $5.500 $4.500 $6.500 $16.500 $19.500 $17.500 $3,500 $40,500 Segment Margin Less: Common Fixed Costs $11.000 $10.500 $6.000 $27.500 Net Operating Income (Loss) $8.500 $7.000 ($2.500 $13.000 Sales Revenue Var, cost CM Less: Direct Fixed Cost Now suppose that $4.000 of the common foxed costs could be avoided if the Heather division was eliminated. Now how much will Market's net operating income increase or decrease if Heather is eliminated? $500 Increase $500 decrease O$1.500 decrease 500 incre

Market has three divisions (Chad, Talbot, and Heather) with the following information Chad Talbot Heather Total $60,000 $50,000 $40,000 $150,000 $35.000 $28.000 $30.000 $93.000 $25,000 $22.000 $10,000 $57.000 $5.500 $4.500 $6.500 $16.500 $19.500 $17.500 $3,500 $40,500 Segment Margin Less: Common Fixed Costs $11.000 $10.500 $6.000 $27.500 Net Operating Income (Loss) $8.500 $7.000 ($2.500 $13.000 Sales Revenue Var, cost CM Less: Direct Fixed Cost Now suppose that $4.000 of the common foxed costs could be avoided if the Heather division was eliminated. Now how much will Market's net operating income increase or decrease if Heather is eliminated? $500 Increase $500 decrease O$1.500 decrease 500 incre

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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