How much will Division 3's income from operations increase?
A) $150,000
B) $50,000
C) $32,000
D) $72,000

Question

Quizplus · Accepted Answer

The income from operations will increase by $3,200,000 x 2% = $64,000. However, Division 3's income will increase further by the transfer of $8,000,000 x 1% = $80,000 from Division 1 to Division 3. Therefore, total increase for Division 3's income from operations will be $64,000 + $8,000 = $72,000.

How Much Will Division 3's Income from Operations Increase