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