1) Assuming fixed costs (in total) have also remained constant for the last (3) year period, decide on which service(s) you would delete (if any) to increase profit margin (net income). Thoroughly Explain your answer. 2) Based on your determination distribute Allocated Overhead based on each remaining departments % of total remaining revenue and eliminated departments Fixed cost evenly to each remaining department. Create a new Profit and Loss table for your results. 3) What other critical review needs to be considered before deleting a service line even though the contribution margin may be negative
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