Although Toyota Corporation has many profitable divisions, three divisions are losing money (see below):

Due to the negative operating income of these three divisions, Kiichiro Toyoda wants to close all three divisions down Based on the information in the table above what is the proper action to take?

A. Shut down all three money losing divisions.

B. Shut down Lexus due to its large loss but keep both Ranz and Scion operational.

C. Shut down Scion but keep both Ranz and Lexus operational.

D. Shut down both Ranz and Scion but keep Lexus operational.

E. Keep all three divisions operational.

Item Lexus Ranz Scion Sales Revenue 1,000,000 (600,000) 600,000 2,000,000 (1,500,000) Variable costs (200,000) Contribution Margin 400,000 400,000 500,000 Traceable Fixed Costs (300,000) (350,000) (550,000) 50,000 (150,000) Segment Margin 100,000 (50,000) Allocated Common Fixed Costs (250,000) (0) Net Operating Income (150,000) (100,000) (50,000)