Question
Coronados currently manufactures art supplies, including markers. The marker sales generate total contribution margin of $85,800. Due to its fixed costs, however, that product line
Coronados currently manufactures art supplies, including markers. The marker sales generate total contribution margin of $85,800. Due to its fixed costs, however, that product line currently shows a net operating loss of $9,400. If Coronados drops markers from its product categories, it will save $76,500 in direct fixed costs associated with the marker production activities. Should Coronados drop its marker product line? Why or why not?(Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Keep Operating income $ $ ?
Drop Operating income $ $ ?
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