Ortega Interiors provides design services to residential and commercial clients. The residential services produce a contribution margin of P450,000 and have traceable fixed operating costs of P480,000. Management is studying whether to drop the residential operation. If closed, the fixed operating costs will fall by P370,000 and Ortega's net income will increase or (decrease) by? (PUT NEGATIVE SIGN IF DECREASE).

Ortega Interiors provides design services to residential and commercial clients. The residential services produce a contribution margin of P450,000 and have traceable fixed operating costs of P480,000. Management is studying whether to drop the residential operation. If closed, the fixed operating costs will fall by P370,000 and Ortega's net income will increase or (decrease) by? (PUT NEGATIVE SIGN IF DECREASE).

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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