= Adobe Reader Touch ENG6433/956-Spring-2019-Week-11 Submission Question 11 35 11.36 Product emphasis and keep or drop: product breakeven; relevant information O3,6 The statement of profit or loss information for Kallapur and Trombley Cotton Growers follows: Premium Regular fancy Total Sales units 100 bales Bales 100 bales 300 bales Sales S2200 $1.600 $1,800 $5,500 Variable costs 1.400 1000 1080 3.480 Contribution marin 800 600 720 2120 Production line fixed costs. 640 725 520 1.88 Corporate costs Callocated 90 80 105 Totalfixed costs 730 8 05 6 25 2.160 Operating income foss) 570 S205) S S160) if the entity drops the product, these costs are no longer incurred of the press is expected lo change if a chat line is droppi Required 21 la) Using the general decision rule, which product should the entity emphasize? Support your answer with calculations. (bUsing the general decision rule, should the entity drop Regular (assuming no changes in demand for other produs Sup your answer with calculations. Show how operating Income would change if Regular were dropped. Ich At what point in bales) would the managers be indifferent to dropping Regular in other words, what is the breakeven in der Regular? (d) What other information would you want before you make a decision about whether to drop Regular? - Type here to search = e D A . di 11:16 AM ENG 15/10/2019 = Adobe Reader Touch ENG6433/956-Spring-2019-Week-11 Submission Question 11 35 11.36 Product emphasis and keep or drop: product breakeven; relevant information O3,6 The statement of profit or loss information for Kallapur and Trombley Cotton Growers follows: Premium Regular fancy Total Sales units 100 bales Bales 100 bales 300 bales Sales S2200 $1.600 $1,800 $5,500 Variable costs 1.400 1000 1080 3.480 Contribution marin 800 600 720 2120 Production line fixed costs. 640 725 520 1.88 Corporate costs Callocated 90 80 105 Totalfixed costs 730 8 05 6 25 2.160 Operating income foss) 570 S205) S S160) if the entity drops the product, these costs are no longer incurred of the press is expected lo change if a chat line is droppi Required 21 la) Using the general decision rule, which product should the entity emphasize? Support your answer with calculations. (bUsing the general decision rule, should the entity drop Regular (assuming no changes in demand for other produs Sup your answer with calculations. Show how operating Income would change if Regular were dropped. Ich At what point in bales) would the managers be indifferent to dropping Regular in other words, what is the breakeven in der Regular? (d) What other information would you want before you make a decision about whether to drop Regular? - Type here to search = e D A . di 11:16 AM ENG 15/10/2019