You are a prestigious management accounting consultant and have been presented
with three different cases from unrelated clients.
PART A marks
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:
Rands
Sales
Direct Material
Depreciation
Salaries and wages
ProfitLoss
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. Use the format below.
Rands Reason for Inclusion Omission
Round your answers to two decimal places where required.
marks
