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Question 5 (7 points) : ATC is a restaurant with the following information for three of their segments (keep in mind that if the company
Question 5 (7 points) : ATC is a restaurant with the following information for three of their segments (keep in mind that if the company stops any of the meal services then they will reallocate the salaries and the franchising costs to other meal services): Lunch 30,000 $ 21,500 $ Dinner 90,000 $ 24,000 Total 127,500 $ 47,500 $ A 66,000 $ 80,000 Breakfast Sales 7,500 $ Food 2,000 $ ingredients Contribution 5,500 $ margin Electricity 600 $ Salaries B Franchising 3,250 $ cost Rent for 200 $ parking spaces Cleaning 1,000 $ expenses Net operating income 1,900 $ 7,500 $ 4,000 $ 3,500 $ 9,300 $ 12,750 $ 6,000 $ 18,000 $ 20,000 $ 500 $ 1,200 $ 12,000 $ 12,000 $ D Required: 1. Find A, B, C, and D (2 points) 2. Determine whether the company should discontinue any service (show your calculations and reasoning) (5 points)
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