RUSafe Inc. (RUS) offers security systems and protection services to businesses and individuals. Management is concerned that offering services to individuals is negatively impacting the profits of the company. The following information is available relative to RUS' financial position:
Management at RUS believes that the warehouses and other fixed resources currently used for individual services could be used to service more businesses, and generate profits similar to current business contracts. Prices charged to businesses are proportional to the fixed cost required by the service.
By how much would Operating Income increase or decrease if the individual services were discontinued?

Question

RUSafe Inc. (RUS) offers security systems and protection services to businesses and individuals. Management is concerned that offering services to individuals is negatively impacting the profits of the company. The following information is available relative to RUS' financial position: 
  Management at RUS believes that the warehouses and other fixed resources currently used for individual services could be used to service more businesses, and generate profits similar to current business contracts. Prices charged to businesses are proportional to the fixed cost required by the service.
By how much would Operating Income increase or decrease if the individual services were discontinued?

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The Answer of RUSafe Inc. (RUS) offers security systems and protection services to businesses and individuals. Management is concerned that offering services to individuals is negatively impacting the profits of the company. The following information is available relative to RUS' financial position: 
  Management at RUS believes that the warehouses and other fixed resources currently used for individual services could be used to service more businesses, and generate profits similar to current business contracts. Prices charged to businesses are proportional to the fixed cost required by the service.
By how much would Operating Income increase or decrease if the individual services were discontinued?