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Forever Great Ltd has two products. Information about these products is as follows: Alpha Gamma Units produced and sold 450 400 Selling price per unit
Forever Great Ltd has two products. Information about these products is as follows:
| Alpha | Gamma |
Units produced and sold | 450 | 400 |
Selling price per unit | $400 | $200 |
Variable expenses per unit | $160 | $70 |
The company's fixed costs totalled $80,000, of which $30,000 can be avoided if Alpha is dropped and $40,000 can be avoided if Gamma is dropped.
How much will be the total net profit of the company if only Gamma is kept?
Group of answer choices
$12,000 Net Profit
$38,000 Net Loss
$2,000 Net Profit
$30,000 Net Loss
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