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Question 21 The following operating results relate to the operations of Sea the World Cruises, Inc. Gift Shop Spa Services Casino Sales $5,000,000 $7,000,000 $10,000,000

Question 21

  1. The following operating results relate to the operations of Sea the World Cruises, Inc.

    Gift Shop

    Spa Services

    Casino

    Sales

    $5,000,000

    $7,000,000

    $10,000,000

    Variable Costs

    4,500,000

    3,000,000

    10,500,000

    Fixed Costs (all allocated)

    600,000

    1,000,000

    2,000,000

    The total fixed costs will remain the same even if one of the above operations is dropped. Identify which (if any) should be eliminated.

Gift Shop

Spa Services

Casino

A.

Eliminate

B.

Keep

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