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2 peas in a pod company makes baby clothes and sells them online, they make blankets, bibs, baby sleep suits, and baby vests. In
peas in a pod" company makes baby clothes and sells them online, they make blankets, bibs, baby sleep suits, and baby vests. In the past two years, they have failed to make a profit with their baby vest line. The following information relates to the costs involved in making the baby vests. Revenue $ per baby vest. Direct labor hours, @ hour Variable overhead $ per baby vest. Fixed overhead $ per baby vest. Avg number of pieces sold per month baby vests. Management is considering discontinuing the baby vest segment of their business.
By how much would operating income per month increase or decrease if this product were dropped?
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