Exercise 12-10 Dropping or Retaining a Segment [LO2] Dexter Products, Inc., manu
ID: 2370357 • Letter: E
Question
Exercise 12-10 Dropping or Retaining a Segment [LO2]
Dexter Products, Inc., manufactures and sells a number of items, including an overnight case. The company has been experiencing losses on the overnight case for some time, as shown on the following contribution format income statement:
Dexter Products, Inc., manufactures and sells a number of items, including an overnight case. The company has been experiencing losses on the overnight case for some time, as shown on the following contribution format income statement:
Explanation / Answer
Definition of 'Net Operating Income - NOI' A company's operating income after operating expenses are deducted, but before income taxes and interest are deducted. If this is a positive value, it is referred to as net operating income, while a negative value is called a net operating loss (NOL). Investopedia explains 'Net Operating Income - NOI' NOI is often viewed as a good measure of company performance. Some believe this figure is less susceptible than other figures to manipulation by management.
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