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I'm stuck on this problem. Can someone plz help correct my mistakes. My calculations just aren't coming out. It's a total of 7 pictures but
I'm stuck on this problem. Can someone plz help correct my mistakes. My calculations just aren't coming out. It's a total of 7 pictures but it's all one problem. The ones in the red boxes on incorrect as well as # 4 final question. Plz help
Instructions Valdespin Company manufactures three sizes of camping tents-small (s), medium (M), and large (L). The income statement has consistently indicated a net loss for the M size, and management is considering three proposals: (1) continue size M, (2) discontinue size M and reduce total output accordingly, or (3) discontinue size M and conduct an advertising campaign to expand the sales of size s so that the entire plant capacity can continue to be used. If Proposal 2 is selected and size M is discontinued and production curtaled, the annual fixed production costs and fixed operating expenses could be reduced by $46,080 and $32,240 respectively. If Proposal 3 is selected, it is anticipated that an additional annual expenditure of $34,560 for the rental of additional warehouse space would yield an additiona 130% in size s sales volume. It is also assumed that the increased production of size s would utilize the plant facilities released by the discontinuance of Size M. The sales and costs have been relatively stable over the past few years, and they are expected to remain so for the foreseeable future. The income statement for the past year ended June 30, 2016, is as follows: Total Size S Size M Size L $668.00000 37300.00 5956.16000 52361 46000 Cost of goods sold 0000000 2000 $43776000 si094 8000 Step by Step Solution
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