Question
Licuado juice company has four product lines : orange, tamato,carrot, and grape shown below is last year's income statement segmented by product line. orange tomato
Licuado juice company has four product lines : orange, tamato,carrot, and grape
shown below is last year's income statement segmented by product line.
orange | tomato | carrot | grape | |
sales | 60000 | 32000 | 24000 | 44000 |
variable expense | 22800 | 11200 | 12000 | 17600 |
contribution margin | 37200 | 20800 | 12000 | 26400 |
traceable fixed expense | 12000 | 8000 | 9000 | 26400 |
segment margin | 25200 | 12800 | 3000 | 19800 |
net operating income last year for licuda company as a whole was $24800
1, if the carrot product line would havebeen dropped at the beginning of last year, how would this have changed the net operating income of licuado as a whole? a)3000 decreases
2.licuado is considering the implementation of a 5000 advertising program specifically targeted at one of the four product lines. the program isexpected to increase sales for any one of the product lines by 12000.if the goal is to maximize the company's net operating income, for which product line should licuado implement the advertising program?
plz explain
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