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Using the identified relevant information, analyze whether or not the Lawn Mowers division should be kept or dropped. Jake stated if the division is dropped,
Using the identified relevant information, analyze whether or not the Lawn Mowers division should be kept or dropped. Jake stated if the division is dropped, he believes 70% of fixed costs can be avoided and fertilizer production can be expanded by 10% by using space vacated by the Lawn Mower division. Jake also provided the following income statement for Green Lawn Corp without the struggling lawn mower division. Green Lawn Corp. Income Statement Without Struggling Division For the Year Ended 12/31/2019 Fertilizers Leaf Blowers Lawn Mowers Total Revenues $54,870 $42,600 $45,640 $143,110 Expenses Variable Costs -$27,600 -$22,270 -$29,090 -$78,960 Fixed Costs -$13,070 $10,510 -$17,510 -$41,090 Total Expenses -$40,670 -$32,780 -$46,600 -$120,050 Net Income (Loss) $14,200 $9,820 -$960 $23,060 Using the relevant information identified in the prior page, prepare the following income statement for Green Lawn Corp without the struggling lawn mower division. Using the relevant information identified in the prior page, prepare the following income statement for Green Lawn Corp without the struggling lawn mower division. DO NOT USE DECIMALS or NEGATIVE VALUES. Round to the nearest whole number. Green Lawn Corp. Income Statement Without Struggling Division For the Year Ended 12/31/2019 Fertilizers Leaf Blowers Lawn Mowers Total Revenues Expenses Variable Costs Fixed Costs Total Expenses Net Income (Loss) Note the difference in the net income for Green Lawn Corp with and without the struggling Lawn Mower Division. You will report the difference to your manager in the next step after reviewing the feedback for this
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