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D Question 15 points) Game Corporation is analyzing a product line with two products, Red and Blue. The company wants to determine if it should
D Question 15 points) Game Corporation is analyzing a product line with two products, Red and Blue. The company wants to determine if it should stop producing Blue, which has experienced a sales dedine over the past several periods. Gamgee allocates fixed costs based on sales revenue. If Blue is dropped sales of Red will increase 10% and the overall cost structure will remain the Should the company stop producing Blue? Please support your answer. Red Blue Sales $180,000 $260,000 Variable COGS 20.000 130.000 Contribution Margin 110,000 130,000 Fixed Corporate Costs 50,000 75,000 Variable Selling/Admin Fixed Selling/Admin 18,000 50,000 12.000 Total Expenses 21.000 80,000 146,000 Net Income $30,000 ($16,000) MacBook Air
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