Question
DIVISION I : SALES, VAR COSTS AND FIXED COSTS ARE 4,000, 1000 AND 1800, RESPECTIVELY DIVISION II: THE NUMBERS ARE 5,000, 3,000 AND 2800, RESPECTIVELY
DIVISION I : SALES, VAR COSTS AND FIXED COSTS ARE 4,000, 1000 AND 1800, RESPECTIVELY
DIVISION II: THE NUMBERS ARE 5,000, 3,000 AND 2800, RESPECTIVELY
DIVISION III : THE NUMBERS ARE 6,000, 1200 AND 1400 , RESPECTIVELY
CASE A: IF WE DUMP DIV II, THE FIXED COSTS WILL REMAIN IN FULL
CASE B: IF WE DUMP IT, THE FIXES COSTS WILL BE TOTALLY ELIMINATED
CASE C: IF WE DUMP IT, 50% WILL BE ELIMINATED
D: IF WE DUMP IT , 60% OF THE FIXED COSTS WILL BE ELIMINATED
FOR EACH CASE DECIDE WHETHER TO DUMP OR KEEP DIV. II AND GIVE A ONE OR TWO SENTENCE EXPLANATION FOR YOUR DECISION
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