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The Lawton Law Firm has a decentralized structure that includes three segments, Wills, Criminal Defense and Real Estate. Data for each segment is provided in
The Lawton Law Firm has a decentralized structure that includes three segments, Wills, Criminal Defense and Real Estate. Data for each segment is provided in the table below. The partners of the firm want to eliminate the wills segment. Should the Lawton Law Firm eliminate the Wills Division? Wills Criminal Defense Real Estate Sales $175,000 $400,000 $285,000 Direct Fixed Costs $200,000 $175,000 $135,000 Lawton should eliminate the Wills segment, by keeping it they are losing $200,000. Lawton should eliminate the Wills segment, by keeping it they are losing $25,000. Lawton should not eliminate the Wills segment, by eliminating it they will lose $175,000. Lawton should not eliminate the Wills segment, by eliminating it they will lose $375,000
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