96% Thu 2:35 PM a E Preview File Edit View Go Tools Window Help Isabella Georgop

Question

96% Thu 2:35 PM a E Preview File Edit View Go Tools Window Help Isabella Georgopoulos O PACE UNIVERSITY My Resource Page Courses Community ePortfolio Bookstore Library Help QUESTION 3 10 points Save Answer The following is the income statement by segments for Jacob Corp PM Income Statement Company Television Computer 490,000 330,000 160,000 Sales HD 230,000 150,000 80,000 Variable costs Contribution Margin 260,000 80,000 180,000 Traceable ho 75,000 165,000 90,000 O PM Fixed Costs Common costs 39,600 Allocated 60,000 20,400 Sho 35,000 50,400 (15,400 Profi 31 AM The company is considering eliminating Computer division as it currently shows a loss of $15,400. Determine the company total profit if the Computer division is eliminated ho a. $30,000 53 PM b. $55,400 C. $24,600 d. Correct answer not listed ho e. $45,000 9 PM

Explanation / Answer

if computer division is eliminated then

Contribution lost                          ( $80,000)

Less:saving in traceable

           fixed cost                                75,000

Decrease in income                          $(5,000)     

Net effect on profit $35,000+$50,400 - 5000 = $80,400

Correct answer not listed

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