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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
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 Laptops 664,200 $ 100,000 378,520 $ 76,000 285,680 $ 24,000 227,940 $ 50,000 57,740 $ $ (26,000) They are considering getting out of the laptop business. If they stop selling laptops all the variable costs for that division will be eliminated and 20,000 of the fixed costs will be eliminated. Should they eliminate the Laptop Division or not? And Why.... show the numbers
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