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Calculate the difference in income/loss between keeping or dropping a product (assume no fixed costs can be eliminated if product is dropped). Assume the following:

Calculate the difference in income/loss between keeping or dropping a product (assume no fixed costs can be eliminated if product is dropped). Assume the following:

  • Selling price per unit = $18.50
  • Direct materials and labor per unit = $12.25
  • Variable overhead per unit = $3.75
  • Fixed overhead per unit = $4.00
  • Income (Loss) per unit = $(1.50)
  • Sales in units = 30,000

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