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Safari File Edit View History Bookmarks Window Help A 2 S Thu 2:39 PM Lynette Disla a E Iblackboard.pace.edu lynette Disla PACE UNIVERSITY My Resource Page Courses Community ePortfolio Bookstore Library Help QUESTION 9 10 points Save Answer The following is the income statement by segments for Jacob Corp Income Statement Company Television Computer 490,000 330,000 160,000 Sales 230,000 150,000 80,000 Variable costs Contribution Margin 260,000 80,000 180,000 Traceable 165,000 90,000 75,000 Fixed Costs Common costs 39,600 Allocated 60,000 20,400 35,000 50,400 (15,400 Profi The company is considering eliminating Computer division as it currently shows a loss of $15,400. Determine the company total profit if the Computer division is eliminated. a. $24,600 a Disla oc. docx

Explanation / Answer

e. $ 30,000

Schedule of Income if Computer Division is eliminated-Television

* tracable fixed costs of computer division are reduced because of elimination of computer division.

** Common cost are alwys incur, either in any alternatve.

e. $ 30,000

Schedule of Income if Computer Division is eliminated-Television

Particulars Amount($) Sales 330000 Less: Variable Cost 150000 Contribution Margin 180000 Less:traceable Fixed cost 90,000* Less:Common cost allocated 60,000** Profit   30,000

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