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Suppose you are a manager of company XYZ, you need to make following decisions: Production-oriented decisions 1) Keep or Drop a product line Currently, XYZ
Suppose you are a manager of company XYZ, you need to make following decisions: Production-oriented decisions 1) Keep or Drop a product line
Currently, XYZ has three divisions A, B, and C. Their financial results: A B C
Sales revenue | 650,000 | 300,000 | 200,000 |
Expense | 450,000 | 120,000 | 97,000 |
Contribution Margin | 200,000 | 180,000 | 103,000 |
Fixed Expense | 65,020 | 82000 | 200,000 |
Net Income | 134,980 | 98,000 | -97,000 |
The table shows Division C has negative net income. Will you drop division C? State your reasons clearly.
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