Question
Campbell's Soup is considering dropping its clam chowder based on the below figures.(4 pts) If the clam chowder is dropped, the revenue associated with it
Campbell's Soup is considering dropping its clam chowder based on the below figures.(4 pts) If the clam chowder is dropped, the revenue associated with it would be lost and therelated variable costs saved. The fixed costs will have to be absorbed by the remaining products.Tomato Clam ChickenChowder NoodleSales 32,600 42,800 51,200Variable Costs 22,000 39,600 40,100Contribution Margin 10,600 3,200 11,100Fixed Costs 4,700 6,000 7,100Operating Profit (Loss) 5,900 (2,800) 4,000Prepare a differential cost schedule and determine if the clam chowder should be dropped.What will be the total operating profit before the clam chowder is dropped?What will be the total operating profit if the clam chowder is dropped?
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