Question: Segmannt Bad: Sales = 800 Variable Cost = 320 Fixed Costs = 580 Case I: If we eliminate bad all fixed costs are eliminated. Case

Segmannt Bad:

Sales = 800

Variable Cost = 320

Fixed Costs = 580

Case I: If we eliminate bad all fixed costs are eliminated.

Case II: If we eliminate bad, all fixed costs stay

Case III: If we eliminate bad, 80% of fixed costs are eliminated

Case IV: If we eliminate bad, 90% of fixed costs will be eliminated

For each case, decide if to keep or dump. Explain why.

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