Department A of K company is being assessed for discontinuation. The contribution to overhead $600,000 is being done. It receives an allocated overhead of $2 million, 10% of which cannot be eliminated. The elimination of Division A would affect pre-tax income by. $1,200,000 Increase $1,200,000 decrease $600,000 Increase $600,000 decrease

ABCDE Inc. has three divisions: AB, CD, and E. All fixed costs are unavoidable. Following is the income statement for the previous year: AB CD E Total Sales $ 515,000 $ 274,500 $ 226,000 $ 1,015,500 Variable Costs 182,000 124,500 100,500 407,000 Contribution Margin 333,000 150,000 125,500 608,500 Fixed Costs (allocated) 272,000 165,250 112,750 550,000 Profit Margin $ 61,000 $ (15,250 ) $ 12,750 $ 58,500 a. What would company’s profit margin be if the CD division were dropped?

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3rd option: decrease $94,000. 4th option: decrease $24,000.

I need help filling out the empty cells