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Bobble Toys, Inc, has three divisions. Budgeting information for next year is as follows: Purple Ball Stick Game Scratcher Total Sales 1,000 600 300 1,900

Bobble Toys, Inc, has three divisions. Budgeting information for next year is as follows:

Purple Ball Stick Game Scratcher Total
Sales 1,000 600 300 1,900
Variable Cost 750 420 200 1,370
250 180 100 530
Fixed Cost 700
Profit (170)

Seventy-five percent. (75%) of the fixed costs are specific to each division being split between

Purple Ball, Stick Game, and Scratcher in the ratio 6: 3 : 1, respectively

Which divisions should be kept open by Bobble Toys?

a) All 3 divisions

b) None of the divisions

c) Purple Ball only

d) Stick Game and Scratcher only

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