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Corn Crunchers has three product lines. Its only unprofitable line is Corn Nuts, (I understand why - corn nuts are awful!!!! ) the results of
Corn Crunchers has three product lines. Its only unprofitable line is Corn Nuts, (I understand why - corn nuts are awful!!!! ) the results of which appear below for 2021: Sales (Variable Costs) $1,400,000 (920,000) (600,000) $(120,000) (Fixed Costs) Net Loss If this product line is eliminated, 30% of the fixed expenses can be eliminated. Should we drop this product line? Yes, drop Corn Nuts and save $180,000 No, keep Corn Nuts and save $60,000 Yes, drop Corn Nuts and save $120,000 No, keep Corn Nuts and save $300,000
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