A country club operated a successful bar lounge

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Reference no: EM13875428

"A country club operated a successful bar lounge that golfers often visit after they finish their golf rounds for drinks. The club also sold warm snacks to these golfers. The overhead of the food operation, however, seemed to be disproportionate. A new pro golfer argued that the food operation should be discontinued. He argued that the club was losing money due to the food operation, thus negatively impacted the club's net income. As a result, the golfer felt that this affected his bonus. As a management accountant, how would you counsel the golfer? Should the club discontinue the food operation? Why or why not?"

Reference no: EM13875428

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