Question 1 Where a specific unit of a product is the cost ob

Question 1:

Where a specific unit of a product is the cost object, the salary of a security guard would probably be...

Direct/Indirect Fixed/Variable

Question 2:

A predetermined overhead rate is calculated...

Where a specific unit of a product is the cost object, the salary of a security guard would probably be... Direct/Indirect Fixed/Variable Question 2: A predetermined overhead rate is calculated...

QUESTION 14 Chambers Company operates three segments. The CEO is wondering whether profits could be improved if Segment A were eliminated. Segment Sales Cost of goods sold Sales commissions Contribution margin General fixed oper. exp. (allocation of president\'s salary Advertising expense (specific to individual divisions) Net income $162,000 $235,000 $245,000 121,000 (92.000) (95,000) (15,000 22000) (22,000) 26,000 121,000 128,000 52,000) (44,000) (3,000) 0000 0 S121000) 59,000 84,000 (44,000) How would the company\'s overall profits change if Division A were eliminated? Profits would increase by $21,000 Profits would decrease by $23,000 Profits would decrease by $26,000 Profits would decrease by $44,000

Solution

Calculate net income :

So answer is c) Clothes

When department continue	Toys	Notions	Clothes
Sales	400	200	80
Variable expense	-128	-52	-34
Contribution margin	272	148	46
Fixed cost	-212	-156	-66
Net income	60	-8	-20
When department eliminate
Unavoidable fixed cost	-96	-52	-12