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Please help solve this problem on excel Question #14 Firm Eta has two product lines: milk and cookies (Santa Claus is one of their primary
Please help solve this problem on excel
Question #14 Firm Eta has two product lines: milk and cookies (Santa Claus is one of their primary shareholders). The firm is concerned that its cookies division is losing money based on the following information: Revenues: Variable Costs: Contribution Margin: Fixed Costs: Operating Income: Cookie Line $45,000 $30,000 $15,000 $26,250 $-11,250 Milk Line $75,000 $45,000 $30,000 $15,000 $15,000 If Firm Eta eliminates the cookies division, it will be able to avoid $20,000 of fixed costs. However, since milk and cookies are complements, the firm also believes that dropping the cookies line will cause them to lose $7,500 of contribution margin from the milk line. What is the financial advantage or disadvantage of dropping the cookies line? If there is a financial advantage, enter the answer as a positive number; if there is a financial disadvantage, enter the answer as a negative number. A B 1 Financial advantage(disadvantage)Step by Step Solution
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