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Can someone explain me the steps to find the change in NOI Bed & Bath, a retailing company, has two departments, Hardware and Linens. The
Can someone explain me the steps to find the change in NOI Bed & Bath, a retailing company, has two departments, Hardware and Linens. The company's most recent monthly contribution format income statement follows: Department Sales Variable expenses Total Hardware Linens $4,270,000 $3,160,000 $1,110,000 1,405,000 991,000 414,000 Contribution margin Fixed expenses 2,865,000 2,169,000 696,000 2,260,000 1,400,000 860,000 Net operating income (loss) 605,000 769,000 (164,000) A study indicates that $377,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue even if the Linens Department is dropped. In addition, the elimination of the Linens Department will result in a 18% decrease in the sales of the Hardware Department. Required: If the Linens Department is dropped, what will be the effect on the net operating income of the company as a whole? in net operating income
Can someone explain me the steps to find the change in NOI
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