Problem
Review the 2015 Annual Report for Nortek, Inc. (in particular the segment reporting, Note 9, which begins on page 125 of the PDF) and respond to the following questions / requirements: o Which segments of this company would appear to be potential candidates for SEGMENT ELIMINATION decisions?
o What DIFFERENTIAL REVENUES and INCREMENTAL COSTS might be relevant to any such segment elimination considerations?
o Although two of the segments for this company reported net operating losses in the most recent fiscal year, what QUANTITATIVE FACTORS and QUALITATIVE FACTORS might discourage elimination of the segments?
o Based on the discussion of risk factors for this company (on page 16 of the PDF), what PRICING STRATEGY appears to be in use? To answer this please Google the 2015 annual report for Nortek inc.