In deciding whether to close a department or division, the general rule to follow is that if the department/division makes a positive contribution, then it should not be closed, where the contribution is at least equal or greater than the income less the variable costs.

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This is the general rule to follow in deciding whether to close a department or division. If it makes a positive contribution, meaning the income is equal to or greater than the variable costs, then it should not be closed.

In Deciding Whether to Close a Department or Division, the General