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C o inst-fs-.ad-prod.inscloudgate.net ... Instructions Cost Behavior BE-Analysis Multi-BE Problem NPV Sunk Costs Death Spiral and Opportunity Costs In addion to video shop. Dan owns

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C o inst-fs-.ad-prod.inscloudgate.net ... Instructions Cost Behavior BE-Analysis Multi-BE Problem NPV Sunk Costs Death Spiral and Opportunity Costs In addion to video shop. Dan owns " p smar to Bearwash, which specialtes n Food Laundryand wdeo Games He is considering dropping a line of video games, which has consistently had an operating loss Ex. Credit Death Spiral Extra Credt Below are the income statements for Dan's ree lines of business 3950 2.500 Fixed Costs Operating Income 1,1251 3751 3751 375 Fixed costs relate to the amount of space thatused in the video stre Gven starts on his abity to sol videos, Dan cannot use this space for anything else. In other words, Dan can only sell videos and can't use the space for other things Should Dan close the video games section? Support your anseer with caloulations and discussion Nowsuppose tat t he neplaced te v deo gameswen admonal tod or laundry he codd get S500 in ad moral food or laundry revenue. The ortbion marpn pencentages would be he same as in therstcase Using opportunity cost conceps should Dan replace video games with either food or laundry services

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