Beverages (Pty) Ltd (Beverages) has four different divisions. One of their divisions (Energy) which produces...
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Beverages Pty Ltd Beverages has four different divisions. One of their divisions Energy which produces energy drinks called LessFire has been struggling for the past three years due to intense market competition.The results of the division for the financial year ended June were as follows:
Sales R
Direct Material R Depreciation R
Salaries and wages R
ProfitLossR
Should the Energy the division be shut down the entire workforce will be retrenched at a cost of R
REQUIRED:
Determine whether the Energy division should be shut down or not.Should you wish to intentionally include or omit a figure from the workings, provide a brief motivation for this decision.
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