Question: hi there, can someone please help me solve this; Anderson Document Services, a document creation and copying company, has two departments, Design and Copying. The
hi there, can someone please help me solve this;

Anderson Document Services, a document creation and copying company, has two departments, Design and Copying. The company's most recent monthly contribution format income statement follows: Total Sales $215,000 Variable expenses 132,000 Contribution margin 83,000 Fixed expenses 39,840 Operating income (loss) $ 43,160 Department Design Copying $60,000 $155,000 39,000 93,000 21,000 62,000 24,900 14,940 $ (3,900) $ 47,060 A study indicates that $11,100 of the xed expenses being charged to the Design Department are sunk costs or allocated costs that will continue even if the Design Department is dropped. In addition, the elimination of the Design Department would result in a 5% decrease in the sales of the Copying Department. Required: 3. If the Design Department is dropped, what will be the effect on the operating income of the company as a whole? :I: I). Should the Design department he dropped? 0 Yes 0 No
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