Why should management discontinue a segment

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Reference no: EM13129681

Forth Corporation has two major business segments-Retail and Wholesale. In March, the Retail business segment had sales revenues of $500,000, variable expenses of $245,000, and traceable fixed expenses of $90,000. During the same month, the Wholesale business segment had sales revenues of $240,000, variable expenses of $101,000, and traceable expenses fixed of $38,000. Common fixed expenses totaled $152,000 and were allocated as follows: $79,000 to the Retail business segment and $73,000 to the Wholesale business segment. Prepare a segmented income statement in the contribution margin format for the company.Omit percentages; show only dollar amounts. Should management discontinue a segment? Which one?

Reference no: EM13129681

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