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10 pts Total Fitness Company is considering dropping product Step Machine. Data from the company's accounting system appear below: Sales Variable Expenses Fixed Manufacturing Expenses
10 pts Total Fitness Company is considering dropping product Step Machine. Data from the company's accounting system appear below: Sales Variable Expenses Fixed Manufacturing Expenses Fixed Selling and Administrative Expenses $620,000 $350,000 $380,000 $220,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that 25% of the fixed manufacturing expenses and 76% of the fixed selling and administrative expenses are avoidable if product Step Machine is discontinued. Required: Should the company discontinue the Step Machine product. Why or why not? Show your calculated analysis
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