Question
ABC Company has three products that use common facilities. The relevant data concerning these three products follows: Product A B C Total Sales $40,000 $60,000
ABC Company has three products that use common facilities. The relevant data concerning these three products follows:
| Product | A | B | C | Total |
| Sales | $40,000 | $60,000 | $100,000 | $200,000 |
| Variable costs | 24,000 | 36,000 | 80,000 | 140,000 |
| Contribution Margin | 16,000 | 24,000 | 20,000 | 60,000 |
| Fixed cost | 10,000 | 15,000 | 25,000 | 50,000 |
| Operating profit | $6,000 | $ 9,000 | <$5,000> | $10,000 |
Fixed costs are allocated common costs, and will not decrease if product line C is dropped. If product line C is dropped, what will be the impact on operating profits?
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The Cybersecurity Body Of Knowledge The ACM IEEE AIS IFIP Recommendations For A Complete Curriculum In Cybersecurity Internal Audit And IT Audit
Authors: Daniel Shoemaker, Anne Kohnke, Ken Sigler
1st Edition
1032400218, 978-1032400211
