Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Bryce Baseballs manufactures baseballs, baseball bats, and baseball gloves. The company is thinking of dropping baseball gloves as a product line. The following report was
Bryce Baseballs manufactures baseballs, baseball bats, and baseball gloves. The company is thinking of dropping baseball gloves as a product line. The following report was prepared by the accounting department: Sales revenues Variable costs Contribution margin Direct fixed costs $ 240,000 (185,000) Segment margin Indirect fixed costs Net income Baseballs Baseball Bats Baseball Gloves Total $105,000 $ 25,000 $370,000 (70,000) (12,000) (267,000) 55,000 $ 35,000 $13,000 103,000 (20,000) (10,000) (13,500) (43,500) 35,000 $ 25,000 (500) 59,500 (17,500) (10,000) (2,500) (30,000) 17,500 15,000 (3,000) $ 29,500 Required: 1.Should the baseball glove line be dropped? Why or why not? 2.What qualitative factors should be considered in deciding whether to drop the baseball glove line
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started