susan clothing company has a division that produces children's clothing. Next year it is projected...

70.2K

Verified Solution

Question

Accounting

susan clothing company has a division that produces children's clothing. Next year it is projected that the children's division will show the following operating results:

contribution margin $200,000

fixed expenses 500,000

Net operating loss $(300,000)

if the children division is eliminated. $170,000 of the above fixed expenses could be avoided. the annual financial advantage (disadvantage) for the company of eliminating this division should be?

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