Answer:
Avoidable fixed costs = $75,000 - $19,500 = $55,500
Segment margin = Contribution margin - Avoidable fixed costs
Segment margin = $25,000 - $55,500
Segment margin = -$30,500
If the department were eliminated, the company would eliminate the department's negative segment margin of $30,500
This shows a lack of responsibility. This is because he has a job to do and he is a just taking a break and being lazy. I don’t know if this is right. But, I hope so. Hope this helped you!!
Answer:
False
Explanation:
If a firm sells on terms of 2/10, net 30 days, and its DSO is 28 days, then the fact that the 28-day DSO is less than the 30-day credit period tell us that the credit department is functioning efficiently and there are no past due accounts. This is a false statement.
