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30 Toa Saiso Corporation manufactures five flavors of salsa. Last year, Toxemia generated net operating income of $40,000. The folowing information was taken from last
30 Toa Saiso Corporation manufactures five flavors of salsa. Last year, Toxemia generated net operating income of $40,000. The folowing information was taken from last year's income statement segmented by flavor (brackets indicate a negative amount 30 Wimpy Mild Medium Hot Atomic s (2,800) $ 45,000 $35,e88 $50,800 $162,e00 $(16,800) (5,008) $ 7,e88 $10,880 $ 94,000 s 10,0e8 $ 10,e80 $10,00 $10,000 $ 10,080 eas Contribution margin Segment nangin Allocated common Fixed expenses Segnent nargin less allocated common fixed expenses s(26,008) (15,000) $(3,000) 84,000 oa expects similar operating results for the upcoming year If Toxemia wants to maximize its profitability in the upcoming year, which flavor or flavors should Toxemia discontinue
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