A company expects its three departments to yield the

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A company expects its three departments to yield the following income for next year.


DEPT. A

DEPT. B

DEPT. C

SALES

$92,000

$15,000

$87,000

EXPENSES




AVOIDABLE

73,000

1,000

36,000

UNAVOIDABLE

2,000

8,000

37,000

TOTAL EXPENSES

75,000

9,000

73,000

NET INCOME (LOSS) $17,000 $6,000 $14,000

Required: compute the following independent calculations

  1. The effect on total company income if dept. A is eliminated.
  2. The effect on total company income if dept. B is eliminated.
  3. The effect on total company income if dept. C is eliminated.

Reference no: EM13572158

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