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please help Suppose Crapy Pop is considering discontinuing as yummy pebbles product line. Assume that during the past year, the yummy peboles' product line income
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Suppose Crapy Pop is considering discontinuing as yummy pebbles product line. Assume that during the past year, the yummy peboles' product line income stalement ahowed the following: Yew the inmone strement date Yire the atditonat information. If the company decides to dscontinue the product line, what wil happen to the compary/s operaing income? Should Crispy Popdsconlinue the yummy pebblesproduct ine? Begin by preparing a conerbution margin income statement for the yummy pobbles' product line. (Use a minus sign or parentheses to anter a loss.) Additional information Fixed manufacturing overhead costs account for 40% of the cost of poods, while only 30% of the operating expenses are foced Since the yummy pobbles ine is just ond of the company's cereat operations, ont $740,000 of direct flxed costs (the majaity of which is advertising) will be eliminated if the produst line is discontinued. The remainder of the foxed costs will stil be incurted by the company. Income statement data Step by Step Solution
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