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Sales lan shumand, president and general manager of Dantury Company, was concened about the future of one of the company's largest divisions. The division's most

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Sales lan shumand, president and general manager of Dantury Company, was concened about the future of one of the company's largest divisions. The division's most recent quarterly income statement follows Less: Cost of goods sold 2,722.400 $1,029,100 1, 100,000 s (70,900) Gross profit Operating (loss) lan is giving serious consideration to shutting down the division because this is the ninth consecutive quarter that it has shown a loss. To help him in his decision, the following additional information has been gathered 1. The division pr duce. one product at a seling price of 5100 to outside parties. The division sells 50% of its output eo another division within the company for S83 per unit rui manufacturing cast plus 25%). The 2. The fixed 3. There is no alternative use foe the facilities if shut down. The facilities and equipment will be sold and the proceeds invested to produce an annuity of $100,000 per year. Of the ficed selling and administrative administrative expenses are incurred Sales lan shumand, president and general manager of Dantury Company, was concened about the future of one of the company's largest divisions. The division's most recent quarterly income statement follows Less: Cost of goods sold 2,722.400 $1,029,100 1, 100,000 s (70,900) Gross profit Operating (loss) lan is giving serious consideration to shutting down the division because this is the ninth consecutive quarter that it has shown a loss. To help him in his decision, the following additional information has been gathered 1. The division pr duce. one product at a seling price of 5100 to outside parties. The division sells 50% of its output eo another division within the company for S83 per unit rui manufacturing cast plus 25%). The 2. The fixed 3. There is no alternative use foe the facilities if shut down. The facilities and equipment will be sold and the proceeds invested to produce an annuity of $100,000 per year. Of the ficed selling and administrative administrative expenses are incurred

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