Exercise 4 - 4 5 ( Algo ) Dropping Product Lines ( LO 4 - 4 )
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Exercise Algo Dropping Product Lines LO
Gilbert Canned Produce GCP packs and sells three varieties of canned produce: green beans; sweet peas; and tomatoes. The company is currently operating at percent of capacity. Worried about the company's performance, the chief marketing officer is considering dropping the canned sweet peas. If sweet peas are dropped, the revenue associated with it would be lost and the related variable costs saved. In addition, the company's total fixed costs would be reduced by percent.
Segmented income statements appear as follows:
tableGreen Beans,Sweet Peas,TomatoesSales$$$
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