One department in a company had a contribution margin of


Question - One department in a company had a contribution margin of $18,000 and a net loss from operations of $3,000. 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:

the same with or without the department.

$3,000 higher.

$18,000 lower.

$15,000 lower.

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Accounting Basics: One department in a company had a contribution margin of
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