1a. Should we close Ensign?

1b. Should we close Commander?

You run a business with three branches. Here are the branches' performance figures. Ensign Admiral Commander 40,000 33,000 110,000 54,000 68,000 55,000 Revenue Variable costs Fixed costs Property tax Marketing Depreciation Total costs Net income 7,000 5,000 3,000 48,000 (8,000) 7,000 5,000 17,000 83,000 27,000 7,000 5,000 12,000 79,000 (11,000) Property tax and marketing are split evenly across the three branches and cannot be avoided if a branch is closed All other costs and revenues are avoidable if a branch is closed