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Based on the segment income statement below, Gourmet Sorbet is considering eliminating its Mango Tango line. Revenue from Mango Tango sales = $500,000. Salaries for
Based on the segment income statement below, Gourmet Sorbet is considering eliminating its Mango Tango line. Revenue from Mango Tango sales = $500,000. Salaries for Mango Tangoworkers = 100,000. Direct Material = $300,000. Equipment depreciation = $75,000. Allocated company-wide facility-sustaining costs = $50,000. Net loss = $25,000. If Mango Tango were eliminated, profitability would
a. | decrease $100,000. | |
b. | increase $100,000. | |
c. | increase $25,000. | |
d. | decrease $25,000. |
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