11. The Frito-Lay food Company manufactures, markets, and sells corn chips, potato chips and other snacks....
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11. The Frito-Lay food Company manufactures, markets, and sells corn chips, potato chips and other snacks. Frito-Lay is considering eliminating the production of potato chips that has an annual revenue of $167,000, variable costs of $115,900 and $87,000 in annual fixed costs. Of the fixed costs, $36,800 cannot be avoided. 1. The annual financial advantage (disadvantage) for the company of eliminating this department would be: 2. Should they drop the potato chips? Yes or No 11. The Frito-Lay food Company manufactures, markets, and sells corn chips, potato chips and other snacks. Frito-Lay is considering eliminating the production of potato chips that has an annual revenue of $167,000, variable costs of $115,900 and $87,000 in annual fixed costs. Of the fixed costs, $36,800 cannot be avoided. 1. The annual financial advantage (disadvantage) for the company of eliminating this department would be: 2. Should they drop the potato chips? Yes or No
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