Duncan Inc. has two divisions, Parker and Ginobili. Following is the income statement for the past...

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Duncan Inc. has two divisions, Parker and Ginobili. Following is the income statement for the past month: Sales Parker 693,10

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Answer 1

Answer #1

>> Profit Margin = Sales - Variable cost - Fixed cost.

>> Even Ginobili division dropped, Fixed cost of Ginobili division is unavoidable.

>> Profit Margin = 693100 - 270200 - 287000 - 184300 = $ - 48400.

>> Loss = $ -48400.

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Answer 2

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