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1 ACG2071 Ch 13 Bonus Asignment . 1. When Mr. Berry, president and chief executive of Berry, Inc., first saw the segmented income statement below,
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ACG2071 Ch 13 Bonus Asignment . 1. When Mr. Berry, president and chief executive of Berry, Inc., first saw the segmented income statement below, he flew into his usual rage: "When will we ever start showing a real profit? I'm starting immediate steps to eliminate those two unprofitable lines Product Lines Total U w Sales $230,000 $100.000 $75,000 $75,000 Variable expenses 112.000 37.000 35.000 47.000 Contribution margin 131,000 63.000 40,000 28,000 Traceable fixed expenses... 98,000 31,000 37,000 30.000 Common expenses, allocated 18,000 10.300 4.400 Net operating income (los). 100 S 14,000 $7.500) 5(6,400) *These traceable expenses could be eliminated if the product lines to which they are traced were discontinued. I 32.900 Required: Recommend which segments, if any, should be eliminated Step by Step Solution
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