The following information was made available concerning the four departments of the Snake-Bite Company.

ABCD

Sales(in $)100,00025,00050,00075,000

Variable cost of gods sold70,00015,00030,00050,000

Variable selling expenses10,0002,0006,00012,000

Contribution margin20,0008,00014,00013,000

Fixed costs20,0005,00010,00015,000

Profit03,0004,000(2,000)

The president of the company has decided that one departmentmustbe dropped. Fixed costs have been assigned according to the sales of each department. Regardless of your decision, fixed costs will be reduced by 25%. Which department should be dropped so as to give the greatest benefit to the company?

Select one:

a.A

b.B

c.C

d.D