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only b (9) 01 (11150) Summer holiday manufactures sunglasses and straw hats Sunglasses are priced at $120, have variable cost of $65, and direct fixed
only b
(9) 01 (11150) Summer holiday manufactures sunglasses and straw hats Sunglasses are priced at $120, have variable cost of $65, and direct fixed costs of $8,000, Straw hats are priced at $55, have variable cost of $35, and direct fixed costs of $3.500. Common fixed costs equal $12,000. Last quarter, Summer holidays sold 250 sunglasses and 130 straw hats. Required: Prepare a segmented income statement for Summer Holidays for last quarter. (a) (b) Summer Holidays plans to stop selling straw hats as the product line is making losses/ The sales of sunglasses would drop by (20%)if sales of straw hats is stopped. Is it a good decision? sales 24000 Step by Step Solution
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