Question
The following is the income statement by segments for JacobCorp.
|
Income Statement |
||||||
|
|
|
Company |
|
Television |
|
Computer |
|
Sales |
|
$ 490,000 |
|
$ 330,000 |
|
$ 160,000 |
|
Variable costs |
|
230,000 |
|
150,000 |
|
80,000 |
|
Contribution Margin |
|
260,000 |
|
180,000 |
|
80,000 |
|
Traceable Fixed Costs |
|
165,000 |
|
90,000 |
|
75,000 |
|
Common costs Allocated |
|
60,000 |
|
39,600 |
|
20,400 |
|
Profit |
|
$ 35,000 |
|
$ 50,400 |
|
$ (15,400) |
The company is consideringeliminating Computer division as it currently shows a loss of$15,400. Determine the company total profit if the Computerdivision is eliminated.
|
|
a. |
$24,600 |
|
|
b. |
$55,400 |
|
|
c. |
$30,000 |
|
|
d. |
$45,000 |
|
|
e. |
Correct answer not listed |
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