The following information relates to next year's projected operating results of the Consumer Division of Xampa Corporation: If the Consumer Division is eliminated, $1, 600, 000 of the above fixed expenses could be avoided.What will be the effect on Xampa's profit next year if Consumer Division is eliminated?
A)$300, 000 increase
B)$300, 000 decrease
C)$200, 000 decrease
D)$200, 000 increase

Question

The following information relates to next year's projected operating results of the Consumer Division of Xampa Corporation:  If the Consumer Division is eliminated, $1, 600, 000 of the above fixed expenses could be avoided.What will be the effect on Xampa's profit next year if Consumer Division is eliminated?
A)$300, 000 increase 
B)$300, 000 decrease 
C)$200, 000 decrease 
D)$200, 000 increase

Quizplus · Accepted Answer

The Answer of The following information relates to next year's projected operating results of the Consumer Division of Xampa Corporation:  If the Consumer Division is eliminated, $1, 600, 000 of the above fixed expenses could be avoided.What will be the effect on Xampa's profit next year if Consumer Division is eliminated?
A)$300, 000 increase 
B)$300, 000 decrease 
C)$200, 000 decrease 
D)$200, 000 increase

The Following Information Relates to Next Year's Projected Operating Results