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Yum, Inc has two divisions, Taco Bell and KFC. The table below is last year's income statement for each division as well as in total
Yum, Inc has two divisions, Taco Bell and KFC. The table below is last year's income statement for each division as well as in total Taco Bell KFC Total Sales Revenue $ 562, 200 $338, 400 $900 , 600 Variable Costs 178,500 176, 200 354, 700 Contribution Margin 383, 700 162, 200 545, 900 Fixed Costs (allocated) 286, 675 172, 925 459 , 600 Operating Income $ 97, 025 $ (10, 725) $ 86, 300 Assuming fixed costs are unavoidable, how much would Yum Inc's operating income be if KFC was dropped? Multiple Choice O $97,025 profit O $86,300 profit O $383,700 profit O $75,900 loss
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