Vanilla

How much will $xYZ\text{'}$s profits change if they choose to sell their hat division $($not including income from the sale of their hat division$)?$

$\backslash$table$[[,$Total,Sneakers Division,Hats Division$],[$Sales$,1,500,000,1,200,000,300,000],[$Variable Expenses,$600,000,480,000,120,000],[$Contribution Margin,$900,000,720,000,180,000],[$Segment Traceable Expenses,$300,000,250,000,50,000],[$Fixed Expenses,$150,000,,],[$Net Income,$450,000,,]]$

just to ma interest. N is $11.$ This

We alreads

$xYZ$ is planning to grow their business next year. The following analysis shows:

a$.xYZ\text{'}$s fixed expenses consist of $$100,000$ in managerial salaries and $$50,000$ in fixed operating expenses such as rent and fixed overhead

b$.$ A corporation that specializes in hats offered to buy $xYZ\text{'}$s Hats division. If $xYZ$ sells their hat division, they will still incur $50\%$ of the Hat's div. segment expenses because of machinery that they cannot resell.

c$.$ Also, if XYZ produces sneakers only, there will be a $20\%$ increase in sales along with $$10,000$ increase in advertising expenses

Net Income Before Sale of Hat Division: $450,000$

Net Income After Sale of Hat Division:

C$.$ Net Income will decrease by $21,000$