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ercise 4 Nederlander Company makes 3 products: Fiets, Klompen & Kaas. Nederlander is considering dropping the Fiets product line based on the following financial data
ercise 4 Nederlander Company makes 3 products: Fiets, Klompen & Kaas. Nederlander is considering dropping the Fiets product line based on the following financial data from last year: Fiets Klompen Kaas Sales 7,000 14,000 21,000 Variable costs 2,800 4,900 9,800 Fixed costs: Product advertising expense 1,120 2,100 1,750 Salary of segment manager 420 560 700 Indirect fixed costs 2.800 3,500 4,900 Total fixed costs 4,340 6,160 7,350 Net operating income (loss) -140.00 2,940 3,850 Calculate the segment margin for Fiets. Sales 7,000 Variable Costs 2,800 = Contribution Margin 4,200 Direct/Traceable Fixed Costs Segment Margin X Incremental profit for Fiets IX Should Nederlander drop the Fiets produl No
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