1. Giving below information for the most current year:

   Big                Small              Medium         Total

Sales                                                                $60,000           $100,000          $40,000          $200,000

Cost of goods sold                                             36,000               65,000          20,000            121,000

Contribution margin                                        24,000               35,000          20,000              79,000

Order and delivery processing                         18,000               21,000              8,000              47,000

Rent (per sq. foot used)                                       2,000                 1,000              3,000                 6,000

Allocated corporate costs                                    7,000                 7,000              7,000              21,000

Corporate profit                                             $ (3,000)             $ 6,000             $ 2,000            $ 5,000

1. If the Big Department is discontinue, the company will have report profit of?
2. If Medium is discontinue, the net profit of the company will be?

Answer rating: 100% (QA)

Solution If the Big Department is discontinued the company will have a report profit of Contribution ... View the full answer