Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. market incorporated has two divisions, talbot and

Market Incorporated has two divisions, Talbot and Heather. The following is the income statement for...

80.2K

Verified Solution

Question

Accounting

Market Incorporated has two divisions, Talbot and Heather. The following is the income statement for the past month:

Talbot Heather Total
Sales revenue $ 348,600 $ 232,400 $ 581,000
Variable costs 290,900 58,100 349,000
Contribution or segment margin* $ 57,700 $ 174,300 $ 232,000
Common fixed costs (allocated) 129,840 86,560 216,400
Net operating income (loss) $ (72,140) $ 87,740 $ 15,600

*Note that there are no direct fixed costs.

What would Market's income (loss) be if the Talbot Division was dropped and all common fixed costs are unavoidable?

Multiple Choice

$72,140 loss

$42,100 loss

$87,740 profit

$232,000 profit

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Accounting
1.2K views

“I’m not sure we should lay out $335,000 for that automated welding machine,” said Jim Alder,...

Physics
1.2K views

In an experiment to determine the resistance of a galvanometer by half deflection method the...

Physics
1.2K views

A jet of water with cross section of 6 cm strikes a wa at an...

Basic Math
1.2K views

6 From a 24 inch by 24 inch piece of metal squares are cut out...

Statistics
1.2K views

William keeps track of the amount of time he works on homework each week and...

Accounting
1.2K views

Consider the one-period closed economy that we've discussed in class, and assume the following information...

Accounting
1.2K views

A. $197,300. B. $465,800. C. $211,500. D. $376.500...

Accounting
1.2K views

calculate the accounts recievable turn over for both companies

Accounting
1.2K views

LossCo reported a net operating loss of $14 million for financial reporting and tax purposes....

Accounting
1.2K views

The management of Rocko's Pizzeria is considering a special promotion for the last two weeks...

Accounting
1.2K views

How to determine how much did a company's investments increase its net income in a...

Accounting
1.2K views

Part 1 Part 2 Laval produces lamps...