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opportunity cost sunk cost variable cost QUESTION 13 The total income from operations is $203,000 DD $ 450.0 For the fourth quarter of 2020, Fred
opportunity cost sunk cost variable cost QUESTION 13 The total income from operations is $203,000 DD $ 450.0 For the fourth quarter of 2020, Fred Limited has four operating segments The results are as follows: OPERATING SEGMENTS AA BB CC Sales $ 250 $ 200.0 $ 500 Variable Costs Cost of Goods Sold 140 172.8 240 Selling & Administrative 30 36.0 30 Contribution Margin 80 (88) 230 Fixed Costs: Cost of Goods Sold 60 19.2 60 Selling & Administrative 55 24.0 30 Net Income $._(35) $152.0) $ 140 1875 30.0 232.5 62.5 20.0 $ 150.0 If a segment is discontinued, about 40% of the fixed costs/expenses for that segment would be eliminated Top management is considering the discontinuation of one or both of the unprofitable segments. Most of the managers agree that both segments should be discontinued INSTRUCTIONS: Present each of the analyses in a table. 1. Should Fred Limited eliminate one or both of the unprofitable segments? If just one, which one? Explain clearly and BE SPECIFIC Prepare analyses to SURROTE your answer. TTT Anal 3 (12)
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