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Question: 27 a company has a total of five operating segments...

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27 A company has a total of five operating segments, three of which are expected to generate net the next operating year: A, B, and C. The following information relates to the activities of each for the upcoming year Segment A Segment B Segn $3,00 3400.0002.50 500 600 25с (350 00,000 s3. Sales revenue Variable costs Segment contribution margin Direct fixed costs Allocation of common fixed costs Segment net income (loss) $2,000,000 $4,0 80,000 1,200,000 1,000,000 400 000 (200,000) 600,000 800,000 300000 (500,000) Direct fixed costs are avoidable, while common fixed costs are unavoidable. The decision to eli any segment(s) will not affect the operating results of any remaining segments. How should the company proceed? O The company should eliminate segment B O The company should eliminate segments B and C The company should eliminate segment A O The company should eliminate all three operating divisions NEXT BOOKMARK CLEAR
ents, three of which are expected to generate net losses in owing information relates to the activities of each segment nt B Segment C Segment A $2,000,000 80,000 1,200,000 1,000,000 400 000 (200,000) $4,000,000 $3,000,000 3400 000 2.500.000 500,000 600,000 800,000600,000 250,000 300,000 (500,000) (350,000) n fixed costs are unavoidable. The decision to eliminate sults of any remaining segments egment B egments B and C egment A
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