Sandhill company has three segments, one of which is unprofitable. The Duchess Doggy Biscuit segment had...
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Sandhill company has three segments, one of which is unprofitable. The Duchess Doggy Biscuit segment had the following results last period: Sales Variable expenses Contribution margin Fixed expenses Net loss $1248000 (768000) 480000 (648000) $(168000) If the Duchess Doggy Biscuit segment is eliminated, 50% of the fixed expenses can also be eliminated, the other 50% will be reallocated. What will happen to company net income if this product line is eliminated? O Increase by $324000. Ⓒ Increase by $168000. O Decrease by $480000. O Decrease by $156000. Sandhill company has three segments, one of which is unprofitable. The Duchess Doggy Biscuit segment had the following results last period: Sales Variable expenses Contribution margin Fixed expenses Net loss $1248000 (768000) 480000 (648000) $(168000) If the Duchess Doggy Biscuit segment is eliminated, 50% of the fixed expenses can also be eliminated, the other 50% will be reallocated. What will happen to company net income if this product line is eliminated? O Increase by $324000. Ⓒ Increase by $168000. O Decrease by $480000. O Decrease by $156000.
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