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RESOURCES emester SY 2018-2019) Part 9 Management Advisory Services...

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Accounting

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RESOURCES emester SY 2018-2019) Part 9 Management Advisory Services Artion of the divisional income statement for the ycar just ended is presented below in condensed form. Net sales Cost of goods sold Gross proft Department E S 250,000 180,000 S 70,000 Loss from operations $ (20,000) The operating expenses of Department F include $45,000 for direct expenses. It is estimated that the discontinuance of Department F would not have affected the sales of the other departments nor have reduced the indirect expenses of the business. Assuming the accuracy of these estimates, determine the effect (increase or decrease and amount) on the income from operations of the business if Department F had been discontinued

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