i need the answer quickly The manager of Q Corporation is recommendingthe closure of Branch B in order to eliminate itsnet loss of P33,750. The income statement shows:Sales Cost of sales Operating expenses directlyrelated to sales Operating expenses indirectlyrelated to sales General & administrativeexpenses allocated Total costs & expensesOperating income Home Branch Branch Office AB P800,000 P300,000 P500,000 P400,000P120,000 P250,000 80,000 30,000 80,00090,000 20,000 110,000 150,000 56,250 93,750P720,000 P226,250 P533,750 P80,000 P73,750P(33,750) If Branch B is closed, one personnel(with salary of P30,000) have to be transferred tothe home office. Branch B has furniture costingP120,000 and with an estimated useful life of 5years has to be transferred also to the homeoffice. REQUIRED: 1. Do you agree with themanager? Explain.

Answer: We do not agree with manager, as if Branch B is closed Net operating income for company will…

Answered: The manager of Q Corporation is…

Business

Accounting

The manager of Q Corporation is recommendir the closure of Branch B in order to eliminate its

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

ChapterE: Departmental Accounting

Section: Chapter Questions

Problem 3P

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