Muench Company has three departments. Data for the most recent year is presented below: Required:
a. Compute the operating income of the company.
b. Compute the contribution margin and operating income of each department.
c. Should any department(s) be eliminated? Which one(s) and why?

Question

Muench Company has three departments. Data for the most recent year is presented below:  Required:
a. Compute the operating income of the company.
b. Compute the contribution margin and operating income of each department.
c. Should any department(s) be eliminated? Which one(s) and why?

Quizplus · Accepted Answer

The Answer of Muench Company has three departments. Data for the most recent year is presented below:  Required:
a. Compute the operating income of the company.
b. Compute the contribution margin and operating income of each department.
c. Should any department(s) be eliminated? Which one(s) and why?

Muench Company Has Three Departments