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are assigned 40 percent to Rosen and 60 percent to Hernandez. Total allocated fixed costs remain the same regardless of how these costs are Which

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are assigned 40 percent to Rosen and 60 percent to Hernandez. Total allocated fixed costs remain the same regardless of how these costs are Which of the following is the course of action preferred by management regarding their Rosen customer? Drop Rosen because total allocated fixed costs will decrease by $204,000 for the company. Keep Rosen because eliminating this customer would have the effect of decreasing company profit by $96,000. Drop Rosen because this customer generates a net loss of $96,000. Keep Rosen because eliminating this customer would have the effect of decreasing company profit by $300,000

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