Tom's Tech evaluates the profitability of three segments: laptops, desktops, and accessories. The financials are:SegmentRevenueDirect CostsLaptops$500,000$300,000Desktops$200,000$120,000Accessories$90,000$50,000Tom...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Tom's Tech evaluates the profitability of three segments: laptops, desktops, and accessories. The financials are:
Segment | Revenue | Direct Costs |
Laptops | $500,000 | $300,000 |
Desktops | $200,000 | $120,000 |
Accessories | $90,000 | $50,000 |
Tom is considering converting the accessories area into an expanded laptops area.
Required: a. By how much must the laptops segment margin increase to maintain Tom’s Tech’s current income? b. Discuss other factors Tom should consider before deciding to eliminate the accessories area to expand laptops.
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.