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A company is thinking about dropping one of its product lines. The monthly income statement for the product line is below: Fhe company provides the
A company is thinking about dropping one of its product lines. The monthly income statement for the product line is below: Fhe company provides the following additional information: - The depreciation above is for specialized machinery that would be disposed of if the product line were dropped. - The product is produced in a factory where some of the company's other products are also produced, so the company would continue to rent the factory if this product line were dropped. - Corporate overhead is allocated to each product line, but total corporate overhead does not change when a product line is introduced or dropped. What is the total expected monthly financial impact (i..e, how will cash flows change) if they drop this product? (Indicate an increase with a positive number and a decrease with a negative number.)
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