Question: i need help with my assignmnet question what should the companys decision be , please show your answer with workings Example: Suppose PBE Ltd. has
Example: Suppose PBE Ltd. has three business segments: cap, apparel and accessories. The contribution income statement is as follows: The accessories segment reports a loss and management wants to remove that segment. When it is removed, the fixed cost cannot be reduced immediately. This may be due to fixed rental charges and labor costs. Cap Apparel Accessories Total irketin karar Sales Revenue #2.000.000 +1.200.000 $400.000 $3.600.000 Ne olmaldr? Variable Cost $800.000 $840.000 $360.000 62.000.000 Contribution Margin $1.200.000 360.000 $40.000 $1.600.000 Fixed Cost $500.000 $200.000 $120.000 $820.000 Profir $700.000 $160.000 -$80.000 $780.000
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