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MCQ 1 Bobble Toys, Inc. has three divisions. Budgeting information for next year is as follows: Sales Variable costs Purple Ball Stick Game $000s $000s
MCQ 1 Bobble Toys, Inc. has three divisions. Budgeting information for next year is as follows: Sales Variable costs Purple Ball Stick Game $000s $000s 1,000 600 750 420 180 Scratcher $000s 300 200 100 Total $000s 1,900 1,370 530 700 (170) 250 Fixed costs Profit Seventy-five percent (75%) of the fixed costs are specific to each division being split between Purple Ball, Stick Game, and Scratcher in the ratio 6:3:1, respectively. Which divisions should be kept open by Bobble Toys? a) All three divisions b) None of the divisions c) Purple Ball only d) Stick Game and Scratcher only
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