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Question
A company expects its three departments to yield the following income for next year:
| Dept. Q | Dept. R | Dept. S | |
| Sales | $6,000 | $7,000 | $8,000 |
| Expenses | |||
| Avoidable | 2,000 | 3,000 | 4,000 |
| Unavoidable | 1,500 | 2,500 | 4,500 |
| Total expenses | 3,500 | 5,500 | 8,500 |
| Net income (loss) | $2,500 | $1,500 | $(500) |
Compute the change to the companys total net income if Dept. S is eliminated.
A. $500 increase
B. $500 decrease
C. $4,000 increase
D. $4,000 decrease
E. $3,500 decrease
Answer
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Related questions
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