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5. Teenie Tiny Houses, Inc. constructs has three divisions. Please use the following data to determine if it should eliminate a division. (Complete the chart)
5. Teenie Tiny Houses, Inc. constructs has three divisions. Please use the following data to determine if it should eliminate a division. (Complete the chart) Little Tiny Teenie Tiny $1,000,000 $3,000,000 $7,000,000 700,000 2,000,000 4,500,000 Total $11,000,000 7,200,000 Sales Variable Costs Contribution Margin Fixed Costs Income (Loss) 200,000 1,100,000 750,000 2,050,000 If Teenie Tiny Houses, Inc. eliminated the Tiny division, the following would occur: + Little $1,000,000 700,000 Teenie Tiny $7,000,000 4,500,000 Total $8,000,000 5,200,000 Sales Variable Costs Contribution Margin Fixed Costs Income (LOSS 200,000 1,800,000 2,000,000 Should Teenie Tiny Houses, Inc. eliminate the Tiny Division? If Yes, then why? If No, then how much of the fixed costs for the Tiny Division was actually eliminated if the Tiny Division is closed down
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