Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. lisa's library evaluates the profitability of thr

Lisa's Library evaluates the profitability of three segments: books, cafe, and events. The financials are:SegmentRevenueDirect CostsBooks$600,000$360,000Cafe$200,000$120,000Events$80,000$50,000Lisa...

90.2K

Verified Solution

Question

Accounting

Lisa's Library evaluates the profitability of three segments: books, cafe, and events. The financials are:

Segment

Revenue

Direct Costs

Books

$600,000

$360,000

Cafe

$200,000

$120,000

Events

$80,000

$50,000

Lisa is considering converting the events area into an expanded books area.

Required: a. Calculate the necessary increase in the books segment margin to maintain Lisa’s Library’s current income. b. Identify other considerations Lisa should evaluate before deciding to eliminate the events area to expand books.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

How does deforestation lead to the extinction of species?ct one:It reduces the amount of oxygen...

Biology
Q

Homework 3/financial ratios CA=300, Cl=200, inventory = 50, find CR and QR AR=600. Sales = 3650, find...

Finance
Q

explain in detail how the endocrine system is reacting during these given situations to bring the...

Medical Sciences
Q

e potenital energy U in joule of a particle of mass 2 kg moving in...

Physics
Q

Identify the following as an experiment or an observational study Veterinary scientists wanted to evaluate...

Statistics
Q

y 3 M al JS Secti al ah Sketch the region enclosed by the given...

Calculus
Q

Factor out the GCF if possible 6r 2 12r 24

Algebra
Q

Determine the monthly cash flows and total cash generated at the end of each month...

Accounting
Q

In addition to the accounts and the lists QuickBooks Online automatically creates for you, discuss...

Accounting
Q

Factory overhead costs During May, Hatch Company incurred factory overhead costs as follows: indirect...

Accounting
Q

Case #1: Health and Safety Meets Incentive Design, Compensation, and Performance Management Pittiulak looked over...

Finance
Q

Find the intrinsic value of the stock that pays a dividend of $1.34 and has...

Finance