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3A. Going Under Pvt. Ltd. provides outsourcing services for three seu payroll, general ledger (GL), and tax compliance. The company is currently contemplating eliminating the
3A. Going Under Pvt. Ltd. provides outsourcing services for three seu payroll, general ledger (GL), and tax compliance. The company is currently contemplating eliminating the GL area because it is showing a pre-tax loss. An annual Income statement follows (in 5000 PAYROLL GL TAX SALES $5,500 $3.900 54,390 VARIABLE MANUFACTURING COSTS (51,678) ($1.245) (51597) VARIABLE NON-MANUFACTURING COSTS (5599) (51400) (5486) DEPARTMENT FIXED COSTS (AVOIDABLE) (51,399) ($1,300) ($1.570) ALLOCATED FIXED COSTS (UNAVOIDABLE) (5378) (5500) (5299) $1.446 (5545) 5438 OPERATING PROFITS If corporate management drops the GL area, what impact would this have on total operating profit? (Give actual dollar impact on profit: "yeso" answers are not acceptable)
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