Cole Co. is a large company that segments its business into cost and profit centers. The Cost center for the manufacture of Product AC2 incurred the following costs in the previous period:
Sales were 5,000 units last period. Each unit sells for $100. The AC2 Department is being evaluated on overall profitability. Last period the department margin was $50,000.
By how much did the department margin increase or decrease this period?

Question

Cole Co. is a large company that segments its business into cost and profit centers. The Cost center for the manufacture of Product AC2 incurred the following costs in the previous period: 
  Sales were 5,000 units last period. Each unit sells for $100. The AC2 Department is being evaluated on overall profitability. Last period the department margin was $50,000.
By how much did the department margin increase or decrease this period?

Quizplus · Accepted Answer

The Answer of Cole Co. is a large company that segments its business into cost and profit centers. The Cost center for the manufacture of Product AC2 incurred the following costs in the previous period: 
  Sales were 5,000 units last period. Each unit sells for $100. The AC2 Department is being evaluated on overall profitability. Last period the department margin was $50,000.
By how much did the department margin increase or decrease this period?

Cole Co Is a Large Company That Segments Its Business into into Cost