San Ruiz Interiors provides design services to residential and commercial clients. The residential services produce a contribution margin of $450,000 and have traceable fixed operating costs of $480,000. Management is studying whether to drop the residential operation. If closed, the fixed operating costs will fall by $370,000 and San Ruiz' income will:
A. increase by $30,000.
B. decrease by $340,000.
C. increase by $340,000.
D. increase by $80,000.
E. decrease by $80,000.
Answer: E
Business
You might also like to view...
Landlords are liable for injuries their tenants and others suffer as a result of any criminal conduct of third parties on the leased premises
a. True b. False Indicate whether the statement is true or false
Business
Adding 1.5 standard deviations of safety stock to the average demand during lead time will result in a service level of approximately:
A) 68.4%. B) 84.1%. C) 93.3%. D) 97.7%.
Business
How do advertising agencies attract new clients?
What will be an ideal response?
Business
In the analysis phase, the development team should consist of just consultants and technical specialists
Indicate whether the statement is true or false
Business