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please answer correct ABC Company Produces and sells three Products - A, B, C. Product A Product B Products Total Sales $100,000 $200,000 $300,000 $600,000
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ABC Company Produces and sells three Products - A, B, C. Product A Product B Products Total Sales $100,000 $200,000 $300,000 $600,000 Less Cost of goods sold 80.000 150.000 200.000 430.000 Gross margin 20,000 50,000 100,000 170,000 Less Operating 30.000 70.000 20.000 170.000 expenses Net operating income $(10.000) $(20.000) $30,000 $0 For each segment, 40% of its cost of goods sold and operating expenses are variable expenses and the remaining balances are fixed expenses. Total fixed expenses (operating and manufacturing) were allocated to each segment as follows: Fixed Expenses Allocated to Each Segment Product A $0 Product B $50,000 Product $70,000 tao How much is the total cost that the company can save, if Product A was dropped? Select one: O a. $110,000 b. $100,000 $90,000Step by Step Solution
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