Question: Saved Help Save & Exit Sub A company has two departments, kids and Adults. The company's most recent monthly contribution format income statement follows: Sales
Saved Help Save & Exit Sub A company has two departments, kids and Adults. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution Margin Fred Bepenses Net operating income fossi Total $4.200.000 2000.000 2.200,000 2.200.000 0 Department Kids $3,000,000 $1200.000 1.500.000 500.000 1500,000 700.000 1.300.000 900.000 200.000 200,000) A study indicates that $100,000 of the fore expenses being charged to the Auts Department are un costs or allocated costs that will contine even if the Adults Department is dropped. In addition, the elimination of the Adults Department will result in a 30 decrease in the sales of the Kids Department, the Adults Department is dropped, what will be the effect on the net operating income of the company as a whole! Multiple Choice Decrease by $350.000 Decrease by $310.000 12 of 13 : Next > to search o - 7:03 PM
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