A business segment reports segment revenues of $1.2 million, segment costs of $1.0 million, and allocated corporate overhead costs of $300,000 If management were to drop the segment, overall corporate profits would:. a. increase by $100.000. b. decrease by $100,000 c. increase by $200,000. d. decrease by $200.000.
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Ответ:
d. decrease by $200.000.
Explanation:
The computation of the segment profit is shown below:
Segment profit = Segment revenues - Segment cost
= $1.2 million - $1.0 million
= $0.2 million or $200,000
Since the management want to drop the segment which results to decrease in the overall corporate profits that means the segment profit will also got decreased by $200,000
The overhead cost is not relevant. Hence, ignored it
Ответ:
$150,000×20,000=3.000.000.000
Explanation:
3.000.000.000÷10=300.000.000 years