The Alligator segment of Wildhorse Specialty Meats is operating at a loss and has the following data: Sales Variable expenses Fixed expenses $732000 512400 366000 If the Alligator segment is eliminated, what will be the effect on the remaining company? Assume that 50% of the fixed expenses will be eliminated and the rest will be allocated to the segments of the remaining company. O $439200 increase. O $36600 decrease. O $36600 increase. O $183000 increase.
The Alligator segment of Wildhorse Specialty Meats is operating at a loss and has the following data: Sales Variable expenses Fixed expenses $732000 512400 366000 If the Alligator segment is eliminated, what will be the effect on the remaining company? Assume that 50% of the fixed expenses will be eliminated and the rest will be allocated to the segments of the remaining company. O $439200 increase. O $36600 decrease. O $36600 increase. O $183000 increase.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![The Alligator segment of Wildhorse Specialty Meats is operating at a loss and has the following data:
Sales
Variable expenses
Fixed expenses
$7320007
512400
366000
If the Alligator segment is eliminated, what will be the effect on the remaining company? Assume that 50% of the fixed expenses will be
eliminated and the rest will be allocated to the segments of the remaining company.
O $439200 increase.
O $36600 decrease.
O $36600 increase.
O $183000 increase.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F562ab372-4fc3-40d7-ab42-38cb0a32279a%2Fcd23af78-1d94-4cfa-8596-c5aefef6d27a%2F7uwxjkn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The Alligator segment of Wildhorse Specialty Meats is operating at a loss and has the following data:
Sales
Variable expenses
Fixed expenses
$7320007
512400
366000
If the Alligator segment is eliminated, what will be the effect on the remaining company? Assume that 50% of the fixed expenses will be
eliminated and the rest will be allocated to the segments of the remaining company.
O $439200 increase.
O $36600 decrease.
O $36600 increase.
O $183000 increase.
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