Philco Furniture manufactures 3 types of office desks. Financial data is as follows: Sales Less Variable Costs Contribution Margin Less: Fixed Costs Advertising Depreciation of Machinery Supervisor's Salaries General Allocated Factory Overhead Net Operating Income TOTAL Round Triangle Square 1,000,000 140,000 500.000 360,000 410,0000 60,000 200,000 150,000 590,000 80,000 300,000 210,000 216,000 41,000 110,000 65.000 95,000 20,000 40,000 35,000 19,000 6,000 7,000 6,000 200,000 60,000 28,000 (15,000) 100,000 72,000 43,000 32,000 Question #11 - If the space and resources currently being used by round department could be used to produce desk chairs with expected traceable fixed costs of $40,000 and an expected contribution margin of $100,000, should the round department be kept or dropped? Show all calculations to support your answer. (2 marks) 1 A B T 00