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The Happy People Co . has 3 divisions, a coffee division, a video games division, and a restaurant. They have been considering closing the video
The Happy People Co has divisions, a coffee division, a video games division, and a restaurant. They have been considering closing the video games division and concentrating in the food business. Given the information below, what is the best decision for The Happy People?
Coffee Division
Video Games Division
Restaurant Division
Sales
$
$
$
Variable Costs
$
$
$
Direct Fixed Costs
$
$
$
Common Fixed Costs
$
$
$
Select answer from the options below
They should drop the video games division since it contributes very little to the bottom line and is a nonrelated business.
They should restructure into a unified company and find savings in the resulting economies of scale.
They should keep the video games division. It positively impacts the bottom line.
They should drop the coffee and restaurant division and concentrate on the most profitable division.
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