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Spes Delta Corp. has three divisions. Alpha and Bravo are profitable, while Charlie is losing money. Delta is considering discontinuing the Charlie division. Revenue and
Spes 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. Bravo Sales revenue Variable costs Fixed costs Alpha $184,000 84,000 76,000 $170,000 46,000 88,000 Charlie $94.000 75,000 35.000 If Charlie is discontinued, 64% of its fixed costs would be avoided, while the rest would hn absorbed by the other two division. If Charlie is discontinued, net income will: -> increase. (enter 1 below) -> decrease te below) -> remainiame enter 3 below) 205 a
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