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Profit will by $

Profit will by $

FINANCIAL ACCOUNTING
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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Party Supply is trying to decide whether or not to continue its costume segment. The information shown is available for Party Supply's business segments. Assume that neither the Dir fixed costs nor the Allocated common fixed costs may be eliminated, but will be allocated to the two remaining segments. Party Floral Costumes Supplies Decorations Sales $160,000 $109,000 $209,000 Variable costs 84,000 50,000 119,000 Contribution margin $76,000 $59,000 $90,000 Direct fixed costs 51,000 20,000 24,000 Allocated common fixed costs 31,000 24,000 31,000 Net income $(6,000) $15,000 $34,000 If costumes are dropped, what change will occur to profit? Profit will by $
Transcribed Image Text:Party Supply is trying to decide whether or not to continue its costume segment. The information shown is available for Party Supply's business segments. Assume that neither the Dir fixed costs nor the Allocated common fixed costs may be eliminated, but will be allocated to the two remaining segments. Party Floral Costumes Supplies Decorations Sales $160,000 $109,000 $209,000 Variable costs 84,000 50,000 119,000 Contribution margin $76,000 $59,000 $90,000 Direct fixed costs 51,000 20,000 24,000 Allocated common fixed costs 31,000 24,000 31,000 Net income $(6,000) $15,000 $34,000 If costumes are dropped, what change will occur to profit? Profit will by $
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