Clay Inc. has two divisions, Myrtle and Laurel. Following is the income statement for the previous year: Myrtle Laurel TotalSales$560,000 $336,000 $896,000Variable Costs 176,000 174,000 350,000Contribution Margin 384,000 162,000 546,000Fixed Costs (allocated) 284,375 170,625 455,000Profit Margin$99,625 $(8,625) $91,000What would Clay's profit margin be if the Laurel division was dropped and all fixed costs are unavoidable?
A. $384,000 profit
B. $99,625 profit
C. $91,000 profit
D. $71,000 loss
Answer: D
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Which of the following statements is true about a GIS?
Special order decisions are about whether to accept or reject special orders at prices below the normal market prices
Indicate whether the statement is true or false
If you are leading a team of analyzers, you should be certain to provide little evidence of previous successes or failures before asking them to make a decision.
a. True b. False
During the year, Next Tec Corp. had the following cash flows: receipt from customers, $10,000; receipt from the bank for long-term borrowing, $6,000; payment to suppliers, $5,000; payment of dividends, $1,000; payment to workers, $2,000; and payment for machinery, $8,000. What amount would be reported for net financing cash flows in the statement of cash flows?
A. ($8,000). B. $2,000. C. $5,000. D. $6,000.