Homework answers / question archive / The common costs are allocated as below, complete the calculation for divisional profit     Bicycles Scooters Fitness Accessories Totals   Revenue   110,500 246,100 78,300 95,600 530,500   Variable Costs (45,900) (113,700) (35,800) (54,400) 249,800   Fixed Costs   (26,000) (30,000) (44,000) (13,000) 113,000   Divisional contribution             Common Costs (6,500) (22,400) (19,100) (8,800) 56,800   Divisional Profit             If All Wheels closes the fitness equipment division, what would be the effect on overall business profitability based on the information provided above? Provide calculations in the column provided

The common costs are allocated as below, complete the calculation for divisional profit     Bicycles Scooters Fitness Accessories Totals   Revenue   110,500 246,100 78,300 95,600 530,500   Variable Costs (45,900) (113,700) (35,800) (54,400) 249,800   Fixed Costs   (26,000) (30,000) (44,000) (13,000) 113,000   Divisional contribution             Common Costs (6,500) (22,400) (19,100) (8,800) 56,800   Divisional Profit             If All Wheels closes the fitness equipment division, what would be the effect on overall business profitability based on the information provided above? Provide calculations in the column provided

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2. The common costs are allocated as below, complete the calculation for divisional profit

3. If All Wheels closes the fitness equipment division, what would be the effect on overall business profitability based on the information provided above? Provide calculations in the column provided.

4. Based on your calculations in part (a), do you recommend that the fitness equipment division be closed? Consider other factors that may influence the decision. Explain your answer.