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Current Attempt in Progress Cullumberindustries manufactures light fixtures for home, retail, and industrial customers. The retail line has been showing losses for several years, and
Current Attempt in Progress Cullumberindustries manufactures light fixtures for home, retail, and industrial customers. The retail line has been showing losses for several years, and management is considering dropping the line. Recent income statements have been very similar to the following information which was prepared for the most recent year: Home Retail Industrial Total Sales $551400 $321400 $831400 $1704200 Variable costs 359000 219100 682300 1260400 192400 102300 149100 443800 Contribution margin Fixed costs 126400 131400 116400 374200 Operating income $66000 $129100) $32700 $69600 Of the forced costs $319200 ot it is common costs that have been allocated equally to each product line. What will total operating income be if Cullumber drops the retailline? $77300 517700) $98700 $22300 Save for at Attempts of I used
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