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can someone help with this practice problem this is all fhe information provided in the question. thanks for whatver you can do with what you
can someone help with this practice problem
this is all fhe information provided in the question. thanks for whatver you can do with what you have.
Information from a company's accounting system regarding a product is as follows: Sales Variable expenses Fixed manufacturing expenses Fixed selling and administrative expenses $710,000 $326, eee $254,000 $202,000 The company is considering dropping this product. All of the fixed expenses of the company are fully assigned through the accounting system. If the product is dropped, $198.000 of the fixed manufacturing expenses and $113.000 of the fixed selling and administrative expenses are avoidable. Required: a. What is the net operating income earned by the product, according to the company's accounting system? (Net losses should be indicated by a minus sign.) b. Calculate the financial advantage (disadvantage) of dropping the product. Should it be dropped? a Net operating income (loss) Financial advantage (disadvantage) b The product dropped should be should not be Step by Step Solution
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