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please solve this asap its urgent Your Retail Store's accountant prepared the following income statement for the ladies' accessories product line: Sales Less: Variable expenses
please solve this asap its urgent
Your Retail Store's accountant prepared the following income statement for the ladies' accessories product line: Sales Less: Variable expenses Contribution margin LESS Fixed expenses Makes Insurance on inventory Advertising Net operating income (loss) $2,825, oee 1327 750 1,497,250 1017eee 56,500 621 500 1.695.ee $ (197,758) 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 $84,750. Required: Calculate the increase or decrease in the operating Income in both alternatives. $ 2.825.000 1.327.750 1.497.250 $ Sales Less: Variable expenses Contribution margin Faced expenses Add: Wages expenses Add: Insurance on inventory expenses Add: Advertising expenses Net operating income (loss) $ 1.017.000 5 84.750 50.500 821,500 nil $ (1.895,000) (197.750) nil s 3 (84.750) Should the ladies' accessores product line be dropped? Yes O NoStep by Step Solution
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