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If Sunland Broadway drops the crystal light fixtures line, it will save $129,000 in fixed costs (the dedicated manager's salary). In this case, will Sunland
If Sunland Broadway drops the crystal light fixtures line, it will save $129,000 in fixed costs (the dedicated manager's salary). In this case, will Sunland be better or worse off financially if it drops the crystal product line? By how much? Sunland would be Karen currently manages the polished chrome division of Sunland Broadway, a business that specializes in ceiling fight fixtures. Its performance has been stable for the past few years. However, the crystal division has been losing market share, while the rustic iron and chrome divisions have beengrowing. For the most part, executives feel that these changes are a result of customer preferences and current trends versus the quality or prices of their products. While they expect preferences to return to the crystal product line in the neat five yesrs. a short-term decision must be made now. Budgeted firancial informstion for Sunland Broadway's upcoming fiscal year is presented below for each division. All fixed costs are currentily assigned evenly to ali divisions. If you were Karen, would you try to sway the executives one way or the other in their decision to keep or drop the crystal product line? Would Karen be better/worse off if they drop the Crystal product line and by how much. Karen would be
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