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Please help with the answers ASAP . Need to explain in an hour. Thanks. Your Retail Store's accountant the following income statement for the ladies'
Please help with the answers ASAP . Need to explain in an hour. Thanks.
Your Retail Store's accountant the following income statement for the ladies' accessories product line $3,275,000 1,539,250 1,735, 759 Sales Less: Variable expenses Contribution margin Less: Fixed expenses: Wages Insurance on inventory Advertising Net operating income (loss) $1,179,000 65,500 720,500 1,965,000 $ (229,250) Management is concerned about the loss and is considering dropping the product line. If the product line is dropped, a job has to be created elsewhere for a long-term employee currently earning an annual salary of $98,250 Required: Calculate the increase or decrease in the operating income in both alternatives. Keep Accesories Product Line Drop Accesories Product Line Sales Fixed expenses Net operating income (loss) 1 of 15 HE Prey Next > Required: Calculate the increase or decrease in the operating income in both alternatives Sales Fixed expenses Net operating income (loss) Should the ladies' accessories product line be dropped? Yes O No Prey 1 of 15 Next >Step by Step Solution
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