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Clipboard Font Alignment NE F24 - f x Costs $5500 AA IC DE FGHIJKLM Ex12 Furniture Company sells three different products and is thinking of
Clipboard Font Alignment NE F24 - f x Costs $5500 AA IC DE FGHIJKLM Ex12 Furniture Company sells three different products and is thinking of cutting production of its chair segment which hasn't made a profit for several years. Chairs Desks Tables Sales $80,000 $140,000 $100,000 Variable Expenses $62,500 $90,000 $60,000 Traceable Fixed Expenses $12,000 $9,500 $10,500 Common Fixed Expenses* $12,500 $21,875 $15,625 Net Operating Income/(Loss) $7,000 $18,625 $13,875 x x x x Prepare a variable costing income statement & include segment margin: Chairs Desks Tables Total Sales - Variable Costs = Contribution Margin - Traceable Fixed Costs = Segment Margin - Common Fixed Costs = Net Operating Income x x x x x x x x 22 Should Furniture Company eliminate the chair segment? I NOI 24 What's the financial impact of eliminating the chair segment? Costs $5500
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