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Macon New facts: Five years later.... Edward's has expanded its operations dramatically. Today, Edward's is considering dropping the Macon territory altogether. It has been a
Macon New facts: Five years later.... Edward's has expanded its operations dramatically. Today, Edward's is considering dropping the Macon territory altogether. It has been a drain on his earnings since he branched out in that direction. Half of Macon area fixed costs will be avoided if the Macon territory is shut down. Edward's Egg rolls Budgeted Income Statement Should May 2022 - November 2023 Milledgeville Edward drop Territory Territory the Macon Sales Revenue $50,000 $23,500 Ingredients $12,345 $8,956 Territory? Labor 16,453 Trays Utilities 325 225 Delivery Prepare a differential Variable costs $35,558 $22,135 analysis to answer this Contribution Margin $14,442 $1,365 question Rent Utilities - Fixed Delivery $8,700 $1,750 8,254 1,200 2,200 4,235 3,500 6,000 600 1,000 100 650 2,100 Operating Income (Loss) $5,742 (385)
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