Department XYZ had sales of $96,000, direct expenses of $58,000 and indirect expenses of $53,000. The indirect expenses allocated to this department would have been incurred whether or not the department existed. If this department had been eliminated, the company's reported net income would have been:

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The Answer of Department XYZ had sales of $96,000, direct expenses of $58,000 and indirect expenses of $53,000. The indirect expenses allocated to this department would have been incurred whether or not the department existed. If this department had been eliminated, the company's reported net income would have been:

Department XYZ Had Sales of $96,000, Direct Expenses of $58,000