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Crane Toys' management is considering eliminating product A, which has been showing a lass for severall years. The compary's annual income statement, is as follows:
Crane Toys' management is considering eliminating product A, which has been showing a lass for severall 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 awailable, no resale value. Corporate expenses - Allocated based on number of employees. Your answer is correct. Restate the income statement in segment margin format. eTextbook and Media (b) Your answer is correct. What wald be the effect on incame if product A were dropped? Net income would by$ (c) Your answer is incarrect. 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 praduct would the company hawe to sell to make the switch from product A to the new product worthwhile
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