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Crane Tays' management is considering eliminating product A, which has been showing a lass for several years. The compary's annual income statement, is as follows:
Crane Tays' management is considering eliminating product A, which has been showing a lass for several years. The compary's annual income statement, is as follows: Advertising expense - Specific to each product. Depreciation expense - Specific to each product; no other use available, no resale value. Corporate expenses - Allocated based on number of employees. (a) Restate the income statement in segment margin format. Attempts: 1 of 5 used (b) Your answer is correct. What wauld be the effect on income if product A were dropped? Net income would by $ (c) Management is considering making a new product using product A's equipment. If the new product's selling price per unit were $11, its variable costs were $4, and its advertising costs were the same as for product A, how many units of the new product wauld the company have to sell to make the switch from product A to the new product warthwhile
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