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Question 10 (10 points) Stratford Limited has three separate business units: heating, ventilation, and plumbing. The combined income statement for the year ending December 31,
Question 10 (10 points) Stratford Limited has three separate business units: heating, ventilation, and plumbing. The combined income statement for the year ending December 31, 2020 is shown below: Total Heating Ventilation Plumbing Revenues $63,900 $11,500 $27,000 $25,400 Variable expenses $39,100 8.100 14,200 16,800 Contribution margin $24,800 3,400 12,800 8,600 Marketing $7,500 2.200 3,100 2,200 General Admin $8,000 1,200 3.800 3,000 Depreciation $1.025 225 380 420 Operating income floss$8,275 $5,520 Stratford's CEO is considering dropping the Heating business unit due to it's continued losses. If this business unit is dropped the company will continue to incur 5800 of its ecneral admin costs and will also kp its capital assets. 50 depreciation will continue to be expensed Roquired. Should Statt dron the heatin usiness unit WRITE YOUR ANSWER ON A SHEET OF PAPER AND UPLOAD IT TO YOUR BRIGHTSPACE DROPBOX SHOW ALL WORKINGS
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