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Many fast food restaurant chains, such as McDonald's, will occastionally discontinue restaurants in their system. What...

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Accounting

Many fast food restaurant chains, such as McDonald's, willoccastionally discontinue restaurants in their system. What aresome financial considerations in deciding to eliminate a store?

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1 Does the segment have a positive contribution margin if a product cover all the variable manufacturing cost and contribute some towards the fixed cost than its a positive contribution margin If its impossible than store have to eliminate 2Can any of the fixed costs be avoided if the segment was discontinued There are two types of fixed costs that should be considered direct fixed costs and common    See Answer
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