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9 A company makes phones, pads and laptops. The Income for each is below: $ $ Revenue Variable Costs Contribution Margin Fixed Costs Net Income

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9 A company makes phones, pads and laptops. The Income for each is below: $ $ Revenue Variable Costs Contribution Margin Fixed Costs Net Income Phones 1,000,000 $ 600,000 $ 400,000 $ 300,000 $ 100,000 $ Pads 664,200 $ 378,520 $ 285,680 $ 227.940 $ 57,740 $ Laptops 100,000 76,000 24,000 50,000 (26,000) They are considering getting out of the laptop business. If they stop selling laptops all the variable costs for that division will go away and 30,000 of the fixed costs will be eliminated. Show what they should do and why

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