Question
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
Management have contemplated with the idea of closing this segment of the business. What is the least amount of fixed costs they would have to avoid in order to make it financially worth it to close this segment?
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