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A company makes three products: A, B and C. Data in TL related to the products are as follows: A B C Sales revenue 90,000
A company makes three products: A, B and C. Data in TL related to the products are as follows:
A B C
Sales revenue 90,000 70,000 50,000
VC 30,000 35,000 25,000
FC 42,000 40,000 22,000
If product B were discontinued, all variable costs and TL10,000 of the fixed costs associated with that product could be avoided. The other fixed costs are unavoidable. If product B is dropped, how will the company's operating profit be affected?
Ltfen birini sein:
a. None of the choices is correct.
b. TL5,000 increase.
c. TL10,000 increase.
d. TL15,000 decrease.
e. TL25,000 decrease.
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