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Product Line Elimination Quiet Feet Inc. produces three different types of shoes. Complete the below contribution margin income statement for each product line. Allocate
Product Line Elimination Quiet Feet Inc. produces three different types of shoes. Complete the below contribution margin income statement for each product line. Allocate total fixed costs to each shoe type based on units as a percent of total units (i.e. use units sold as the cost driver). 10 77 78 79 80 81 82 Sales (units) 83 Price 84 85 Sales revenue 86 87 Contribution margin 88 89 Variable costs Fixed costs (all allocated) Operating income 90 Boots Sneakers Sandals Total Relevant? 6,000 15,000 4,000 25,000 $ 50.00 $ 25.00 $ 5.00 180,000 91 92 What is operating income if Quiet Feet Inc. stopped selling Boots? 93 What is operating income if Quiet Feet Inc. stopped selling Sneakers? 94 What is operating income if Quiet Feet Inc. stopped selling Sandals? 95 96 What product line (if any) should Quiet Feet Inc. stop producing? 97 98 99 100 101 315,000 Boots n/a n/a 24,000 519,000 n/a n/a 106,700 n/a n/a n/a n/a n/a n/a n/a Sneakers
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