Shirley Inc. has three divisions, King, West and Gold. All fixed costs are unavoidable. Following is the income statement for the previous year: a. What would Shirley's profit margin be if the West division were dropped?
b. What would Shirley's profit margin be if the Gold division were dropped?

Question

Shirley Inc. has three divisions, King, West and Gold. All fixed costs are unavoidable. Following is the income statement for the previous year:  a. What would Shirley's profit margin be if the West division were dropped?
b. What would Shirley's profit margin be if the Gold division were dropped?

Quizplus · Accepted Answer

The Answer of Shirley Inc. has three divisions, King, West and Gold. All fixed costs are unavoidable. Following is the income statement for the previous year:  a. What would Shirley's profit margin be if the West division were dropped?
b. What would Shirley's profit margin be if the Gold division were dropped?