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please help!! Suppose Eagle Products is considering discontinuing its soy cerenl product line. Assume that during the past year, the soy cereal product lino incorne
please help!!
Suppose Eagle Products is considering discontinuing its soy cerenl product line. Assume that during the past year, the soy cereal product lino incorne statement showod the foiowing (Click the icon to view the income statoment data.) (C) (Click the icon for additional information.) If the company decides to discontinue the product line, what will happen to the company's operating inoome? Should Eagle Products discontinuo the soy cereal product line? Aeain bv preparing a contribution margin income statement for the soy cereal product line. (Use a minus sign or parentheses to entor a loss.) Propare an incremental analynis to show hew the discontinued soy coreal product line will affect Eagle Products's operating income. (Enter a "0" in an input fold if there is no expected change as a rosult of discontinuing soy cereal.) Data table More info Flied manufacturing overhead costs acoount for 40% of the cost of goods, while only 30% of the operating expenses are fixed. Since the soy cereal line is only one of the company's brealfast cereals, only $725,000 of cirect foxed costs (the majority of which is advertising) will be eliminated if the product line is discontinued. The remainder of the foxed costs will stil be incurred by the company Step by Step Solution
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