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Snoop's Bakery makes and sells cakes and cookies. Snoop Dogg is concerned about the continued losses shown by the cookie segment and wants to
Snoop's Bakery makes and sells cakes and cookies. Snoop Dogg is concerned about the continued losses shown by the cookie segment and wants to see whether or not the line should be dropped. Cookies Cakes Sales $10,500 $20,700 Variable Expenses $6,300 $8,750 Contribution Margin $4,200 $11,950 Depreciation of $760 $1,400 Special Equipment Advertising (Traceable) Allocated Common Fixed Expenses $750 $720 $3,000 $4,320 The special equipment used to produce cookies has no resale value and does not wear out. If Snoop's Bakery decides to drop the cookie segment, what will the company's new net operating income be? Round your answer to the nearest dollar.
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