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Question 5 3 pts Delta Corp. has three divisions. Alpha and Bravo are profitable, while Charlie is losing money. Delta is considering discontinuing the Charlie
Question 5 3 pts Delta Corp. has three divisions. Alpha and Bravo are profitable, while Charlie is losing money. Delta is considering discontinuing the Charlie division. Revenue and cost information is shown below. Alpha $189,000 Bravo $165.000 Charlie $94.000 Sales revenue Variable costs Fixed costs 80,000 50,000 74,000 35,000 81,000 85,000 If Charlie is discontinued, 65% of its fixed costs would be avoided, while the rest would be absorbed by the other two division. If Charlie is discontinued, net income will: -> increase. (enter 1 below) -> decrease (enter 2 below) -> remain the same (enter 3 below)
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