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South Division has the following information:
Sales $800,000
Variable expenses 450,000
Fixed expenses380,000
Problem 1: If this division is eliminated, $70,000 of the fixed expenses will be allocated to the company's other divisions. What is the incremental effecton net income if the division is dropped?
A $40,000 decrease
B. $30,000 increase
C. $30,000 decrease
D. $40,000 increase
E. $310,000 increase
Give statement of changes in equity for the year ended December 31, 2020, assuming profit earned during the year was $124,800.
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