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Alternate problem C Following are sales and other operating data for the three products made and sold by Marine Enterprises: Product B C Total Sales
Alternate problem C Following are sales and other operating data for the three products made and sold by Marine Enterprises: Product B C Total Sales $150,000 $90,000 $240,000 $480,000 Manufacturing costs: Fixed $ 15,000 $25,000 $30,000 $ 70,000 Variable 120,000 35,000 134,000 289,000 Selling and administrative expenses: Fixed 5,000 30,000 10,000 45,000 Variable 2,500 5,000 6,000 13,500 Total costs $142,500 $ 7,500 $95,000 $(5,000) $180,000 $ 60,000 $417,500 $ 62,500 Net income (loss) In view of the net loss shown for Product B, company management is considering dropping that product. All variable costs are direct costs and would be eliminated if Product B were dropped: all fixed costs are indirect costs and would not be eliminated. Assume that the space used to produce Product B would be left idle
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