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Current business segment operations for Whitman, a mass retailer, are presented below.  Management is contemplating the discontinuance of the Restaurant segment since "it is losing money." If this segment is discontinued, $30,000 of its fixed costs will be eliminated. In addition, Merchandise and Automotive sales will decrease 5% from their current levels. When considering the decision, Whitman’s controller advised that one of the financial aspects Whitman should review is contribution margin. Which one of the following options reflects the current contribution margin ratios for each of Whitman's business segments?A. Retailing 60%; Automotive 50%; Restaurant 70%. B. Retailing 40%; Automotive 50%; Restaurant 30%. C. Retailing 60%; Automotive 50%; Restaurant 30%. D. Retailing 40%; Automotive 50%; Restaurant 70%. |