Question

a-1. Based on the preceding information, recommend whether to eliminate Division B. a-2. Prepare companywide income statements before and after eliminating Division B. b. During 2017, Division B produced and sold 24,000 units of hand tools. Calculate the contribution to profit if sales and production increase to 39,000 units in 2018? c. Suppose that Solomon could sublease Division B's manufacturing facility for $425,000. Assuming that Division B currently has a production and sales volume of 39,000 units, determine whether Solomon should accept the opportunity to sublease the facility or continue production at Division B.

Answer 1

Answer:

solomon is supposed to continue production at Division B because of the increase in the production volume and sales volume that has increased.

Explanation:

Solomon should take the risk of continuing in the business for like a certian period so that he can be able to asses the production fully before making a decision of probably Subleasing the facility.

Sublease: this is the act of  leasing  a property by a tenant to a subtenant