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Author Question: Ron Jensen, the controller of Inca Industries, has prepared an analysis to help management determine ... (Read 126 times)

kandiwilson165@gmail.com

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Ron Jensen, the controller of Inca Industries, has prepared an analysis to help management determine whether one of Inca's departments should be eliminated. The department's contribution margin is $44,000. The fixed expenses charged to the department total $75,000. Of the fixed expenses, Jensen estimates that $36,000 of those expenses would be eliminated if the department were discontinued. Based on Jensen's analysis, if the department is eliminated, Inca's overall operating income would
◦ decrease by $31,000 per year.
◦ increase by $8,000 per year.
◦ decrease by $8,000 per year.
◦ decrease by $5,000 per year.


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Marked as best answer by kandiwilson165@gmail.com on Feb 5, 2023

swagmaster69

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kandiwilson165@gmail.com

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Reply 2 on: Feb 5, 2023
Great answer, keep it coming :)


mochi09

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Reply 3 on: Yesterday
:D TYSM

 

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