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Johnson Company manufactures and sells different colors of dry erase markers. Results from last year from the sale of green markers is given below:
Johnson Company manufactures and sells different colors of dry erase markers. Results from last year from the sale of green markers is given below: Sales revenue (79,000 units @ $4 each) ... $316,000 Variable costs $237,000 Contribution margin $ 79,000 Fixed costs: Salaries of line supervisors $ 43,000 Advertising expense $ 28,000 Allocated general overhead $19,000 ...... $ Net loss Johnson Company is considering eliminating the green dry erase markers product line. The company has determined that if the green markers are discontinued, the contribution margin of its other products will increase by $7,000. Calculate the amount of the decrease in company profits if the green dry erase markers product line is discontinued. Do not enter your answer in carmen with a negative sign in front of the number.
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