Green Industries has two sales territories-North and South.Financial information for the two territories is presented below: Because the company is in a start-up stage,corporate management feels that the North sales territory is creating too much of a cash drain on the company and it should be eliminated.If the North territory is discontinued,one sales manager (whose salary is $40,000 per year)will be relocated to the South territory.By how much would Green's income change if the North territory is eliminated?
A)increase by $88,000
B)increase by $48,000
C)decrease by $267,000
D)decrease by $227,000

Question

Green Industries has two sales territories-North and South.Financial information for the two territories is presented below:  Because the company is in a start-up stage,corporate management feels that the North sales territory is creating too much of a cash drain on the company and it should be eliminated.If the North territory is discontinued,one sales manager (whose salary is $40,000 per year)will be relocated to the South territory.By how much would Green's income change if the North territory is eliminated?
A)increase by $88,000 
B)increase by $48,000 
C)decrease by $267,000 
D)decrease by $227,000

Quizplus · Accepted Answer

The Answer of Green Industries has two sales territories-North and South.Financial information for the two territories is presented below:  Because the company is in a start-up stage,corporate management feels that the North sales territory is creating too much of a cash drain on the company and it should be eliminated.If the North territory is discontinued,one sales manager (whose salary is $40,000 per year)will be relocated to the South territory.By how much would Green's income change if the North territory is eliminated?
A)increase by $88,000 
B)increase by $48,000 
C)decrease by $267,000 
D)decrease by $227,000

Green Industries Has Two Sales Territories-North and South