15

Mangan Corporation has four operating divisions. The budgeted revenves and expenses for each division for 2020 follows: (Cick to viow the results of each division.) Clowing down amy division would result in savings of 7ow of the fixed coats of that diviolon. Fop management is very concemed about the unpecthable am(sians (A and 8 ) and is considering closing them for the year Road the reavirements. Requirements 1. Calculate the increase or decrease in operating income if Mangan closes division A. 2. Calculate the increase or decrease in operating income if Mangan closes division B. 3. What other factors should the top management of Mangan consider before making a decision? Requirement 1. Calculate the increase or decrease in operating income if Mangan closes division A. Requirement 2. Calculate the increase or decrease in operating income if Mangan closes division B. Requirement 3. What other factors should the top management of Mangan consider before making a decision? A. Management should consider the impact on the morale of the remaining employees if the division(s) are close B. Management should consider the role that the divisions' product line plays relative to other product lines. C. Both of the above. D. Neither of the above, management should make this decision relying only on financial data. Mangan Corporation has four operating divisions. The budgeted revenves and expenses for each division for 2020 follows: (Cick to viow the results of each division.) Clowing down amy division would result in savings of 7ow of the fixed coats of that diviolon. Fop management is very concemed about the unpecthable am(sians (A and 8 ) and is considering closing them for the year Road the reavirements. Requirements 1. Calculate the increase or decrease in operating income if Mangan closes division A. 2. Calculate the increase or decrease in operating income if Mangan closes division B. 3. What other factors should the top management of Mangan consider before making a decision? Requirement 1. Calculate the increase or decrease in operating income if Mangan closes division A. Requirement 2. Calculate the increase or decrease in operating income if Mangan closes division B. Requirement 3. What other factors should the top management of Mangan consider before making a decision? A. Management should consider the impact on the morale of the remaining employees if the division(s) are close B. Management should consider the role that the divisions' product line plays relative to other product lines. C. Both of the above. D. Neither of the above, management should make this decision relying only on financial data