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Bayshore Company manufactures and sells Product K. Results for last year are as follows: Sales (10,000 units at $100 each) $1,000,000 Less expenses: Variable Cost
Bayshore Company manufactures and sells Product K. Results for last year are as follows:
Sales (10,000 units at $100 each) |
| $1,000,000 |
Less expenses: |
|
|
Variable Cost | 500,000 |
|
Traceable fixed Cost | 365,000 |
|
Allocated fixed manufacturing overhead | 160,000 |
|
Total expenses |
| 1,025,000 |
Net operating loss |
| $(25,000) |
Bayshore is reexamining all of its product lines and is trying to decide whether to discontinue Product K. Segmented Income for Product K is
Select one:
a. $25,000
b. $135,000
c. $160,000
d. $500,000
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