Question 1: Where a specific unit of a product is the cost object, the salary of

Question

Question 1:

Where a specific unit of a product is the cost object, the salary of a security guard would probably be...

Direct/Indirect Fixed/Variable

Question 2:

A predetermined overhead rate is calculated...

Where a specific unit of a product is the cost object, the salary of a security guard would probably be...

Direct/Indirect Fixed/Variable

Question 2:

A predetermined overhead rate is calculated...

QUESTION 14 Chambers Company operates three segments. The CEO is wondering whether profits could be improved if Segment A were eliminated. Segment Sales Cost of goods sold Sales commissions Contribution margin General fixed oper. exp. (allocation of president's salary Advertising expense (specific to individual divisions) Net income $162,000 $235,000 $245,000 121,000 (92.000) (95,000) (15,000 22000) (22,000) 26,000 121,000 128,000 52,000) (44,000) (3,000) 0000 0 S121000) 59,000 84,000 (44,000) How would the company's overall profits change if Division A were eliminated? Profits would increase by $21,000 Profits would decrease by $23,000 Profits would decrease by $26,000 Profits would decrease by $44,000

Explanation / Answer

Calculate net income :

So answer is c) Clothes

When department continue Toys Notions Clothes Sales 400 200 80 Variable expense -128 -52 -34 Contribution margin 272 148 46 Fixed cost -212 -156 -66 Net income 60 -8 -20 When department eliminate Unavoidable fixed cost -96 -52 -12

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