Answered step by step
Verified Expert Solution
Question
1 Approved Answer
O points Save Antwer Brickman's Pharmacy sells a variety of products. The business is divided into four segments or departments for reporting purposes. The departments
O points Save Antwer Brickman's Pharmacy sells a variety of products. The business is divided into four segments or departments for reporting purposes. The departments and their operating results are as follows: Pharmaceuticals Cosmetics Sales Revenue $ 600,000 Variable Costs 425.000 $ 300,000 200.000 Contribution Margin $ 175,000 Fixed Costs 80.000 $ 100,000 60.000 Net Income (Loss) $ 95,000 $ 40,000 Grocery $ 200,000 170,000 $ 30,000 40.000 $(10,000) Household $ 400,000 250.000 $ 150,000 80.000 $ 70,000 The fixed costs consist of insurance, property taxes, interest, and other costs that will not be eliminated if a department is discontinued. Brickman's management is considering eliminating the grocery department. Assuming sales in the other departments will not be affected by dropping the grocery department, what will be the effect on the company's total operating income? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIS Paragraph Arial 10pt Click Save and Submit to save and submit. Click Save All Answers to save all annoers. I. Save All Awes Sam and Subma
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started