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AudioMart is a retailer of vintage vinyl records and equipment. The store carries two popular sound systemsSystem A and System B. System A, of slightly
AudioMart is a retailer of vintage vinyl records and equipment. The store carries two popular sound systemsSystem A and System B. System A, of slightly higher quality than System B, costs $18 more. With rare exceptions, the store also sells a specialized headset when a system is sold. The headset can be used with either system. Variable-costing income statements for the three products follow:
*This includes common fixed costs totaling $17,500, allocated to each product in proportion to its revenues. Round all answers to the nearest whole number. Required: numbers. (Note: Be sure to complete 2(b) below the statement.) Feedback Check loy work 2(b) Should system B be dropped? of the revenues of B, and sales of the headsets would drop by 10%. The contribution margin ratio of C is 50%, and its direct fixed costs would be identical to those of B. below the statement.) Feadbock Check Miy Work 3(b) Should System B be dropped and replaced with System C? The best option is toStep by Step Solution
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