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Nicolette Corporation operates in a decentralized format. Each segment prepares financials, showing segment profits/losses incurred each fiscal period. One division has been a constant loss
Nicolette Corporation operates in a decentralized format. Each segment prepares financials, showing segment profits/losses incurred each fiscal period. One division has been a constant loss leader for the company. Their latest results are as follows:
Sales $1,200,000 Variable costs $1,050,000 Fixed costs $350,000
Assuming none of the fixed costs are avoidable, what is the effect on overall firm profits if this division is eliminated? If profits go down enter amount as a negative.
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