DECIDE WHETHER TO DISCONTINUE A DEPARTMENT $($Learning Objective $4)$

This case is a continuation of the Casino Halifax Entertainment Corporation serial case that

began in Chapter $1.$ Refer to the introductory story in Chapter $1$ for additional background.

$($The components of the Casino Halifax serial case can be completed in any order.$)$

What follows are the income statements for Casino Halifax Entertainment Corporation for the

three years ending December $31,2018,$ through $2020.$Casino Halifax Entertainment Corporation

NOTE: To answer these questions, calculate a segment margin for each of the departments. For

the purpose of this case only, calculate segment margin as revenues less direct expenses. $($We

are modifying the concept of segment margin slightly here, given the information that is

publicly available. We are essentially assuming that the direct expenses are the variable

expenses.$)$

Using the statements of operations $($income statements$)$ given, answer the following questions:

$1.$ Calculate the segment margin for the three departments: Casinos, Food and Beverage,

and Rooms.

$2.$ Given the segment margins that you calculated, should Casino Halifax discontinue any

of the three departments? Why or why not?

$3.$ What expenses are likely to be included in $$Miscellaneous expenses$?$ Should these

expenses be allocated to the three departments if Casino Halifax is evaluating whether

it should discontinue any departments? Why or why not?