Franklin, Inc. has two divisions, Seward and Charles. Following is the income statement for the previous...

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Franklin, Inc. has two divisions, Seward and Charles. Following is the income statement for the previous year! Sales Variable

Multiple Choice Ο $267,960 Ο $892,800 Ο $131,310 Ο $26,310

business accounting

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Answer 1

Answer #1

Option D

Fixed cost equally allocated = 210000/2 =105000

After shuting down a divison sewards Fixed cost will be = (136650-105000)+210000= 241650

Profit = 267960-24160

=26310

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Answer 2

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