The Oasis Company sells sporting equipment in three departments: baseball, soccer and tennis. Oasis is considering eliminating its tennis segment. Oasis will base its decision on the financial results of the tennis segment for its most recent year end, which are: Sales $2,000,000 Cost of goods sold (750,000) Sales commissions (200,000) Contribution margin $1,050,000 Corporate office overhead allocation $1,200,000 Net income/(loss) ($150,000) Using the information above and relying on a quantitative analysis only, Answer Choices: The Tennis Segment should not be eliminated. OR The Tennis Segment should be eliminated.
The Oasis Company sells sporting equipment in three departments: baseball, soccer and tennis. Oasis is considering eliminating its tennis segment. Oasis will base its decision on the financial results of the tennis segment for its most recent year end, which are:
Sales $2,000,000
Cost of goods sold (750,000)
Sales commissions (200,000)
Contribution margin $1,050,000
Corporate office
Net income/(loss) ($150,000)
Using the information above and relying on a quantitative analysis only,
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