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Mohave Corp. is considering eliminating a product from its Sand Trap line of beach umbrellas. This collection aimed at people who spend time on the
Mohave Corp. is considering eliminating a product from its Sand Trap line of beach umbrellas. This collection aimed at people who spend time on the beach or have an outdoor pat-o near the beach. Two products, the Indigo and Verde umbrellas, have impressive sales. However, sates for the Azul model have been dismal Mohave's information related to the Sand Trap line is shown below. Mohave has determined that eliminating the Azul model would cause sales of the Indigo and Verde modes to increase by 10 percent and 15 percent, respectively. Variable costs for these two models would increase proportionately. Although the direct fixed costs could be eliminated, the common fixed costs are unavoidable. The common fixed costs would be redistributed to the remaining two products. Complete the table given below. if Mohave Corp drops the Azul line. (Do not round intermediate calculations. Round Common Fixed Costs to the nearest whole dollar.) Complete the table given below assuming that Mohave had no direct overhead in its production information and re entire $51,000 of fixed cost was common fixed cost
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