Jag, Jr has just purchased a lawn service business. Jag has 3 different lines of business. Residential, Commercial and Apartments. Results of each of the divisions is shown below: Residential Sales Commercial 650,000 Variable expenses 450,000 Contribution margin 200,000 Less: Fixed expenses 50,000 Division supervisor salary 98,000 Allocated rent expense 175,000 Apartments Advertising traceable to the area. 50,000 Net operating income -123,000 300,000 200,000 100,000 68,000 25,000 -43,000 950,000 250,000 700,000 50,000 48,000 325,000 277,000 Jag believes the market is saturated and he has no room for expansion in any area. He brings this information to you for advice. You suggest;

Jag, Jr has just purchased a lawn service business. Jag has 3 different lines of business. ings this information to you for advice. You suggest; Jag believes the market is saturated and he has no room for expansion in any area. He brings this information to you for advice. You suggest; Eliminate C Eliminate B \& C Eliminate B Keep all divisions