Peggy's Golf Equipment, Inc. sells equipment through pro shops at golf courses, Pegay's Golf has...
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Peggy's Golf Equipment, Inc. sells equipment through pro shops at golf courses, Pegay's Golf has two divisions: Golf Clubs and Golf Balls. For the past month, the income for the two divisions was as follows: Golf Clubs Golf Balls Total Sales $371.000 $385.000 $750 000 Variable costs 218.000 S425.000 Contribution Margin 583,000 5237.000 $320.000 Fred Costs Callocated 122.000 112.000 $234.000 Prot $139,000) $125.000 $85.000 What would Peggy's prolit be if the Golf Club division was dropped and all forced costs are un voldable? $39,000 profit 53.000 pro 583.000 loss 586,000 profit
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