Use the information below to answer the following questions.
Travel Made Easy Ltd provides three services: International travel, Interstate travel, and Holiday Packages. The results for the year were as follows: The fixed costs have been shared equally between the three functions.
-Refer to the table above. Assume that Travel Made Easy can sublet the space occupied by the Holiday Packages staff for $50,000 per annum. The best advice to management is:

Question

Use the information below to answer the following questions.
Travel Made Easy Ltd provides three services: International travel, Interstate travel, and Holiday Packages. The results for the year were as follows:  The fixed costs have been shared equally between the three functions.
-Refer to the table above. Assume that Travel Made Easy can sublet the space occupied by the Holiday Packages staff for $50,000 per annum. The best advice to management is:

Quizplus · Accepted Answer

If the service is closed, the company would lose $50,000 in revenue from subletting but save $40,000 in costs, resulting in a net decrease in profit of $10,000.

Use the Information Below to Answer the Following Questions