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Current business segment operations for Whitman, a mass retailer, are presented below. Merchandise Automotive Restaurant Total Sales Variable Costs Fixed Costs $500,000 $400,000 $100,000 $1,000,000
Current business segment operations for Whitman, a mass retailer, are presented below. Merchandise Automotive Restaurant Total Sales Variable Costs Fixed Costs $500,000 $400,000 $100,000 $1,000,000 Operating Income (loss) 300,000 200,000 70,000 570,000 100.000 100.000 50.000 250,000 100,000 100,000 (20,000) 180,000 Management is contemplating the discontinuance of the Restaurant segment since "it is losing money." If this segment is discontinued, $30,000 of its fixed costs will be eliminated. In addition, Merchandise and Automotive sales will decrease 5% from their current levels. What will Whitman's total contribution margin be if the Restaurant segment is discontinued? Round to a whole number
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