Consider the Marshall Company's segment analysis: Common costs are allocated based on sales dollars.If Marshall eliminates Segment B,what is the impact on the operating loss of the company?
A)The loss decreases by $40,000.
B)The loss increases by $20,000.
C)The loss decreases by $60,000.
D)The loss increases by $40,000.

Question

Consider the Marshall Company's segment analysis:  Common costs are allocated based on sales dollars.If Marshall eliminates Segment B,what is the impact on the operating loss of the company?
A)The loss decreases by $40,000. 
B)The loss increases by $20,000. 
C)The loss decreases by $60,000. 
D)The loss increases by $40,000.

Quizplus · Accepted Answer

The Answer of Consider the Marshall Company's segment analysis:  Common costs are allocated based on sales dollars.If Marshall eliminates Segment B,what is the impact on the operating loss of the company?
A)The loss decreases by $40,000. 
B)The loss increases by $20,000. 
C)The loss decreases by $60,000. 
D)The loss increases by $40,000.

Consider the Marshall Company's Segment Analysis: Common Costs Are