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1. Tactical Decision Making (C1, P2) (Weight: 25) Fast food restaurant, The Way, has 3 products whose financial reports per segment last year were as

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1. Tactical Decision Making (C1, P2) (Weight: 25) Fast food restaurant, The Way, has 3 products whose financial reports per segment last year were as follows: The Way Sandwich Burger Fried Chicken Total Revenue 800 600 750 2150 Variabel exp 500 400 350 1250 CM 300 200 400 900 Fixed Exp 150 250 500 Segment Margin 150 -50 300 400 Common fixed exp. 300 Operating Income 100 100 Because the burger product experienced a loss, the management planned to close the burger line. In Fixed Expenses there is a depreciation expense of IDR 50 million for Sandwich, IDR 35 million for Burger and IDR 65 million for Fried Chicken. About : a. Calculate the change in operating income if the burger is closed b. According to the operational manager, closing the burger line will cause fried chicken sales to decline because 10% of fried chicken sales come from low-cost packages which are a combination of burgers and fried chicken. Calculate the change in operating income if closing burgers resulted in a 10% decrease in fried chicken sales. C. Based on answer B, should the burger be kept closed

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