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Product line Lakeland Financial Services provides outsourcing services for three areas: payroll, general ledger ( GL ) , and tax compliance. The company is currently
Product line
Lakeland Financial Services provides outsourcing services for three areas: payroll, general ledger GL and tax compliance. The company is currently contemplating the elimination of the GL area because it is showing
pretax loss. An annual income statement follows.
If the GL area were dropped, how would the company's pretax profit be affected?
Note: Do not use a negative sign with your answer.
Dropping the segment would result in an incremental gain of hat
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