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Please help with the answers ASAP with the formulas implemented Your Retail Store's accountant prepared the following income statement for the ladies' accessories product line:
Please help with the answers ASAP with the formulas implemented
Your Retail Store's accountant prepared the following income statement for the ladies' accessories product line: Sales $3,225,000 1,515,750 1,709, 250 Less: Variable expenses Contribution margin Less: Fixed expenses: kages Insurance on inventory Advertising Net operating income (loss) $1,161,000 64,500 709,500 1,935,000 $ (225,750) 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 $96,750. 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. What is the net dollar advantage or disadvantage of accepting the outside supplier's offer? (Do not round the intermediate calculations. Round your intermediate calculations to two decimal places.) 2. What is the annual rental value at which the company will be indifferent between the two options? (Do not round the intermediate calculations. Round your intermediate calculations to two decimal places.) Annual rental valueStep by Step Solution
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