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This data extracted from the books of Al-Hoshan industrial company: Description Gross profit Direct materials Direct labor Rent Advertising Others Total Net profit(loss) Cash at
This data extracted from the books of Al-Hoshan industrial company: Description Gross profit Direct materials Direct labor Rent Advertising Others Total Net profit(loss) Cash at bank Sales Suppliers Customers Capital (x) Section 29,000 5,000 7,000 2,000 2,000 4,000 20,000 9,000 (Y) Section 17,000 4,000 8,000 4,000 6,000 3,000 25,000 8,000 Total 46,000 9,000 15,000 6,000 8,000 7,000 45,000 1,000 50,000 60,000 30,000 25,000 30,000 Q1: The company is studying the proposal to dispense with section (Y), If you knows that the facility doesn't want to dispense with the location of section (Y), and $1000 of advertising costs peraining to the facility as a whole, and other expenses of $1000 that serve the general purpose of the facility. Would you recommend closing this
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