2. The common costs are allocated as below, complete the calculation for divisional profit 

 

	Bicycles	Scooters	Fitness	Accessories	Totals
Revenue	110,500	246,100	78,300	95,600	530,500
Variable Costs	(45,900)	(113,700)	(35,800)	(54,400)	249,800
Fixed Costs	(26,000)	(30,000)	(44,000)	(13,000)	113,000
Divisional contribution
Common Costs	(6,500)	(22,400)	(19,100)	(8,800)	56,800
Divisional Profit

3. If All Wheels closes the fitness equipment division, what would be the effect on overall business profitability based on the information provided above? Provide calculations in the column provided. 

 

4. Based on your calculations in part (a), do you recommend that the fitness equipment division be closed? Consider other factors that may influence the decision. Explain your answer. 

Answer rating: 100% (QA)

Bicycles Scooters Fitness Accessories Totals Revenue 110500 246100 78300 95600 530500 Variable Costs ... View the full answer