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Discontinued Segment or Operation A company has an unprofitable division for the current year: Sales Cost of Goods Sold Gross Profit Selling and Admin Income

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Discontinued Segment or Operation A company has an unprofitable division for the current year: Sales Cost of Goods Sold Gross Profit Selling and Admin Income from operations 75,000 50,000 25,000 80,000 (55,000 Fixed costs are 40% for cost of goods sold and variable costs are 60% of the selling and admin expenses. The company assumes that fixed costs would not be affected if the division were discontinued. Using a differential analysis, determine if the division should be retained

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