Assume that you are the owner of a factory that manufactures toys. You have divided your...

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Assume that you are the owner of a factory that manufactures toys. You have divided your business operations into two segments: Dhaka segment and Khulna segment. The following table shows the breakdown of the firm's performance for the two main business segments: Total Dhaka Khulna ($) ($) ($) Revenues 2600,000 1500,000 1100,000 Variable Expenses 1290,000 1200,000 90,000 Contribution Margin 1310,000 300,000 1010,000 Traceable advertisement cost 320,000 150,000 170,000 Depreciation special equipment 123,000 32,000 91,000 Segment Margin 867,000 118,000 749,000 Common Fixed Expenses 910,000 90,000 820,000 Net Operating Income (43,000) 28,000 (71,000) [Marks: 15] As a sensible business person do you think it would be a wise decision to close down the Khulna segment Required: as this segment is incurring huge loses as shown in the table above? If your answer is 'No' then show all calculations/ workings on the basis of which you made your decision. Assume that you are the owner of a factory that manufactures toys. You have divided your business operations into two segments: Dhaka segment and Khulna segment. The following table shows the breakdown of the firm's performance for the two main business segments: Total Dhaka Khulna ($) ($) ($) Revenues 2600,000 1500,000 1100,000 Variable Expenses 1290,000 1200,000 90,000 Contribution Margin 1310,000 300,000 1010,000 Traceable advertisement cost 320,000 150,000 170,000 Depreciation special equipment 123,000 32,000 91,000 Segment Margin 867,000 118,000 749,000 Common Fixed Expenses 910,000 90,000 820,000 Net Operating Income (43,000) 28,000 (71,000) [Marks: 15] As a sensible business person do you think it would be a wise decision to close down the Khulna segment Required: as this segment is incurring huge loses as shown in the table above? If your answer is 'No' then show all calculations/ workings on the basis of which you made your decision.

Answer rating: 100% (QA)

Discotinuing Khulna segment is not advisable So it is not advisable to discontinue the ... View the full answer