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Hong Publishing has purchased Lang Publishing. After reviewing titles from both companies, a decision must be made to determine what titles must be dropped. The
Hong Publishing has purchased Lang Publishing. After reviewing titles from both companies, a decision must be made to determine what titles must be dropped. The following information is available to make the decision. Title X Title Y Title z Sales $100,000 $150,000 $200,000 Variable Cost 49,000 75,000 99,000 Contribution Margin $51,000 $75,000 $101,000 Direct Fixed Cost 19,000 29,000 41,000 Allocated Common Fixed Cost 9,000 14,000 21,000 Net Income $23,000 $32,000 $39,000 A. What is the total income if all titles were produced? B. If Title X was dropped, what would be the effect on Net Income? C. How much did Title X Contribute to Fixed Costs? D. Determine the cost and the amount that will remain even if Title X is dropped. E. Which costs and amount will be eliminated if Title X is dropped
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