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The discount division of a diversified retailer has revenues of $10,000,000, direct costs of $8,000,000, and indirect costs of $3,000,000. What is the short-run impact of eliminating this division?
A) The short-run profit will increase by $1,000,000.
B) The short-run profit will decrease by $2,000,000.
C) The short-run profit will decrease by $3,000,000.
D) The short-run impact cannot be determined based on the information provided.
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Retail Management: A Strategic Approach

Retail Management: A Strategic Approach


Edition: 13th
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