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Noble Company has two stores, Store #1 and Store #2. Store #1 had revenues of $500,000, variable costs and expenses of $250,000, direct fixed costs
Noble Company has two stores, Store #1 and Store #2. Store #1 had revenues of $500,000, variable costs and expenses of $250,000, direct fixed costs of $48,000 and corporate headquarters allocated costs of $60,000 for bottom-line profit of $142,000. Store #2 had revenues of $150,000, variable costs and expenses of $95,000, direct fixed costs of $45,000 and corporate headquarters allocated costs of $15,000 for a bottom-line loss of $5,000. Should Store #2 be discontinued or not? Explain in detail why you answered that way.
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