Question: Practice problem 2. Keep or Drop Decision U-Develop had 3 departments: - Print Department - Camera Department - Frame Department - Print Department is currently

Practice problem 2. Keep or Drop Decision U-Develop had 3 departments: - Print Department - Camera Department - Frame Department - Print Department is currently operating at a loss o If Print Dept. is eliminated: - No change in rent - All Print Dept. salaries will be eliminate - Half of the allocated Selling ( & ) Admin. costs will be eliminated - Operating profit (loss) if Print Dept. is eliminated = - Operating profit (loss) if Print Dept. is kept = - Should the Print Dept. be eliminated? - Qualitative considerations:

Practice problem 2. Keep or Drop Decision U-Develop had 3 departments: - Print Department - Camera Department - Frame Department - Print Department is currently operating at a loss - If Print Dept. is eliminated: - No change in rent - All Print Dept. salaries will be eliminate - Half of the allocated Selling \& Admin. costs will be eliminated - Operating profit (loss) if Print Dept. is eliminated = - Operating profit (loss) if Print Dept. is kept = - Should the Print Dept. be eliminated? - Qualitative considerations

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