Roberts Forest Corporation operates two divisions, the Timber Division and the Consumer Division. The Timber...
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Roberts Forest Corporation operates two divisions, the Timber Division and the Consumer Division. The Timber Division manufactures and sells logs to paper manufacturers. The Consumer Division operates retail lumber mills which sell a variety of products in the doityourself homeowner market. The company is considering disposing of the Consumer Division since it has been consistently unprofitable for a number of years. The income statements for the two divisions for the year ended December are presented below: tableTimber Division,Consumer Division,TotalSales$$$Cost of goods sold,Gross profit,Selling & administrative expenses,Net income,$$$ In the Consumer Division, of the cost of goods sold are variable costs and of selling and administrative expenses are variable costs. The management of the company feels it can save $ of fixed cost of goods sold and $ of fixed selling expenses if it discontinues operation of the Consumer Division. a Determine whether the company should discontinue operating the Consumer Division. Enter negative amounts using either a negative sign preceding the number eg or parentheses eg Do not leave any field blank. Enter for the amounts. List variable expenses before fixed expenses.
Roberts Forest Corporation operates two divisions, the Timber Division and the Consumer Division. The Timber Division manufactures and sells logs to paper manufacturers. The Consumer Division operates retail lumber mills which sell a variety of products in the doityourself homeowner market. The company is considering disposing of the Consumer Division since it has been consistently unprofitable for a number of years. The income statements for the two divisions for the year ended December are presented below:
tableTimber Division,Consumer Division,TotalSales$$$Cost of goods sold,Gross profit,Selling & administrative expenses,Net income,$$$
In the Consumer Division, of the cost of goods sold are variable costs and of selling and administrative expenses are variable costs. The management of the company feels it can save $ of fixed cost of goods sold and $ of fixed selling expenses if it discontinues operation of the Consumer Division.
a
Determine whether the company should discontinue operating the Consumer Division. Enter negative amounts using either a negative sign preceding the number eg or parentheses eg Do not leave any field blank. Enter for the amounts. List variable expenses before fixed expenses.
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You can see the logs in the Dashboard.