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An organic products retailer, has two departments: Housewares and Gardenwares. The company's most recent monthly contribution margin format income statement is as follows: Internal reports
An organic products retailer, has two departments: Housewares and Gardenwares. The company's most recent monthly contribution margin format income statement is as follows: Internal reports indicate that $38, 100 of the fixed expenses being charged to Gardenwares are allocated costs that will continue even if the eliminating the Gardenwares Department will result in a 19% decrease in sales for the Housewares Department. What is the impact to the total company's profit if the Gardenwares Department is dropped
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