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Barbour Corporation, located in Buffalo, New York, is a retailer of high - tech products and is known for its excellent quality and innovation. Recently,
Barbour Corporation, located in Buffalo, New York, is a retailer of hightech products and is known for its excellent quality and innovation. Recently, the firm conducted a relevant cost analysis of one of its product lines that has only two products, T and T The sales for T are decreasing and the purchase costs are increasing. The firm might drop T and sell only T
Barbour allocates fixed costs to products on the basis of sales revenue. When the president of Barbour saw the income statements see below he agreed that T should be dropped. If T is dropped, sales of T are expected to increase by percent next year, but the firm's cost structure will remain the same.
table The st blank as a drop down with options Net income on discontinuing T and Net loss on discontinuing t
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