23 3 points Alfa Corporation has four departments, Sales Cost of sales (variable) Gross profit (contribution margin) Dir

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23 3 Points Alfa Corporation Has Four Departments Sales Cost Of Sales Variable Gross Profit Contribution Margin Dir 1 (30.34 KiB) Viewed 13 times

23 3 points Alfa Corporation has four departments, Sales Cost of sales (variable) Gross profit (contribution margin) Direct fixed expenses Common fixed expenses Total expenses Net income (Loss) Total $2,100,000 1,326,000 774,000 $144,000 316,000 460,000 $314,000 all of which appear to be profitable except department 4. Operating data for 2022 are as follows: Departments 1-3 Department 4 3 points $1,650,000 1,006,500 643,500 $120,000 200,500 320,500 $323,000 $450,000 319,500 130,500 $24,000 115,500 139,500 $9,000) Which of the following is correct if the department 4 is eliminated? (Ignore the effect of income tax.) The firm's net income will decrease by 130,500. The firm's net income will decrease by $106,500 The firm can save common fixed expenses allocated to Department 4. The direct fixed expenses for Department 4 is unavoidable.