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Please help with the solution ASAP with the required formula implemented $3,300,000 1,551,000 1,749,000 Sales Less: Variable expenses Contribution margin Less: Fixed expenses: Wages Insurance
Please help with the solution ASAP with the required formula implemented
$3,300,000 1,551,000 1,749,000 Sales Less: Variable expenses Contribution margin Less: Fixed expenses: Wages Insurance on inventory Advertising Net operating income (loss) $1,188,000 66,000 726,000 1,980,000 $ (231,000 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 $99,000. 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) 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) Should the ladies' accessories product line be dropped? Yes NoStep by Step Solution
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