Question: Here are some things to consider when discontinuing a segment of a business: 1. Will discontinuing a segment have adverse effects on the sale of
Here are some things to consider when discontinuing a segment of a business:
1. Will discontinuing a segment have adverse effects on the sale of other products?
2. Can the freed up capacity be used for another purpose?
3. Can any of the fixed costs be avoided if the segment was discontinued?
4. Does the segment have a positive contribution margin?
5. What impact does discontinuing a route have on the financial statements? What impact does Discontinuing a flight have on the other flights in the organization?
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
