Enhance company''s financial performance

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Reference no: EM1311130

Decision on shut down a division.

Cameron Company has recorded the following information about the results of its operations for the first quarter:

	Total Company	Southern Division	Northern Division
Sales revenues	$200,000	$ 80,000	$120,000
Variable cost of sales	$ 60,000	$ 30,000	$30,000
Fixed costs:
Common	$100,000	25,000	75,000
Traceable	$ 50,000	20,000	30,000

Which alternative would most likely improve this company's financial performance, overall?

a) shut down Southern Division

b) shut down Northern Division

c) reduce common fixed costs

d) reduce traceable fixed costs

Reference no: EM1311130

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