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A question I'm comparing from an end of the chapter 9Sardine Kitchen Company produces three sizes of crock pots: small, medium & large. A condensed
A question I'm comparing from an end of the chapter
9Sardine Kitchen Company produces three sizes of crock pots: small, medium & large. A condensed segmented income statement for a recent period follows: Medium $200,000 110,000 90,000 55,000 S 35,000 Large $200,000 125.000 SmallTotal Sales Variable expenses Contribution margin Fixed expenses Net income (loss) S105,000 $505,000 300,000 205,000 157000 $(7,000) 48000 65,000 40,000 47.000 75,000 $20,000 Assume none of the fixed expenses for the small-size crock pot are avoidable. What will be total net income if the small-size crock pot line is dropped? a. $47,000 b. $13,000 c. $8,000 d. $55,000 9Sardine Kitchen Company produces three sizes of crock pots: small, medium & large. A condensed segmented income statement for a recent period follows: Medium $200,000 110,000 90,000 55,000 S 35,000 Large $200,000 125.000 SmallTotal Sales Variable expenses Contribution margin Fixed expenses Net income (loss) S105,000 $505,000 300,000 205,000 157000 $(7,000) 48000 65,000 40,000 47.000 75,000 $20,000 Assume none of the fixed expenses for the small-size crock pot are avoidable. What will be total net income if the small-size crock pot line is dropped? a. $47,000 b. $13,000 c. $8,000 d. $55,000Step by Step Solution
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