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Can Someone help me figure out how the answer is -303? Pottery Unlimited has two product lines: cups and pitchers. Income statement data for the
Can Someone help me figure out how the answer is -303?
Pottery Unlimited has two product lines: cups and pitchers. Income statement data for the most recent year follow: Total Cups Pitchers Sales revenue $460,000 $310,000 $150,000 Variable expenses 355,000 235,000 120,000 Contribution margin 105,000 75,000 30,000 Fixed expenses 76,000 38,000 38,000 $29,000 $37,000 $(8,000) Operating income (loss) If $29,697 in fixed costs will be eliminated by dropping the Pitcher line, how will operating income be affected? If income drops, use a negative sign in front of the numberStep by Step Solution
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