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Diva Footwear is contemplating if it should continue producing platform shoes. The following information is avalable for the company's segmer Platform Shoes Athletic Shoes Boots
Diva Footwear is contemplating if it should continue producing platform shoes. The following information is avalable for the company's segmer Platform Shoes Athletic Shoes Boots Sale6 $120,000$420,000$360,000 Varlable costs 64.0000.220.000.140.000 Contribution margin 56,000200,000220,000 Direct fixed costs 45,00070,00090,000 Allocated fxed costs 20.00070.000,60.000 Net income (59,000)$60,000$70,000 If platform shoes are dropped, what effect will occur to Dlva Footwear's net income? Increase by $9,000 Decrease by $56,000 Decrease by $11,000 Increase by $55,000 8. The following Information is avallable for Diva Footwear's segments: Platform Shoes Athietic Shoes Boots Sales 5120,0005420,0005360,000 Varlable costs 64,000,220,000,140,000 Contribution margin 56,000200,000220,000 Dlrect fixed cosss 45,000 70,000 90,000 Allocated fred costs 20.000 70.000.60.000 Net income (\$9,000) 560,000570,000 must pay a fixed cost of $4,000 to have the boots shipped. Diva has the capacity to produce this order, and no regular sales will be affected. What affect will oocur on Divars pronts if the order is accepted? Profts will increase by $42,000. Frotfs wal increase by $49,060. Proffe will increase by $45,000. More informaton is needed to
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