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3....s Kingbird Corporation has a division that manufactures children's and ladies' basketball shoes. If it eliminates manufacturing the ladies' basketball shoes, $28,800 of fixed costs
3....s
Kingbird Corporation has a division that manufactures children's and ladies' basketball shoes. If it eliminates manufacturing the ladies' basketball shoes, $28,800 of fixed costs will still remain. For the year, the ladies' basketball shoe line had sales of $301,000, variable costs of $227,000, and fixed expenses of $93,800. Prepare an analysis showing whether the company should eliminate the ladies' basketball shoe line: (If an amount reduces the net income then enter with a negative sign preceding the number e.g. 15,000 or parenthesis, e.g. (15,000). While altemate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.)Step by Step Solution
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