Jerry Mounds,controller for Pearl Distributing,has Prepared the Following Financial Information

question 127

Essay

Jerry Mounds,controller for Pearl Distributing,has prepared the following financial information for the most recent period showing profitability the of its three departments :
The factory rent of $3,200 assigned to Department C is avoidable if the department is eliminated.Depreciation will remain unchanged if a department is dropped.Discontinuing Department C will reduce the utilities by $600.

Required:

Prepare an analysis showing whether Department C should be eliminated.

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Definitions:

Retail Layout

The strategic arrangement of physical space and displays in a retail store to optimize customer experience and sales.

Material Handling

The process of moving, safeguarding, storing, managing, and overseeing materials and products during production, storage, distribution, use, and disposal stages.

Departmental Work Flows

The sequence of processes through which a work or project passes from initiation to completion within specific departments.

Flow Matrix

A tool used in process management and operations research to depict the flow of materials, products, or information between process steps or departments.