Jerry Enterprises is considering whether to discontinue a division that generate

Question

Jerry Enterprises is considering whether to discontinue a division that generates a total contribution margin of $65,000 per year. Fixed manufacturing overhead allocated to this division is $50,000, of which 18,000 is unavoidable. If Jerry Enterprises were to eliminate this division, the effect on the company's operating income would be a (n) decrease in total operating income of $33,000. increase in total operating income of $47,000. increase in total operating income of $33,000. decrease in total operating income of $47,000.

Explanation / Answer

B. increase in total operating income of $47,000.

Related Questions

Navigate

• Browse (All)
• Browse J
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.