Question
Profits have been decreasing for several years. Albert Co. is considering to drop the product WW. Sales of the product WW total $400,000; variable expenses
Profits have been decreasing for several years. Albert Co. is considering to drop the product WW. Sales of the product WW total $400,000; variable expenses total $420,000. Fixed expenses charged to the product WW total $230,000. The company estimates that $200,000 of these fixed expenses are not avoidable even if the product is dropped. If Product WW is dropped, what is the annual financial advantage (disadvantage) for the company of eliminating this product WW?
Do not use dollar sign or commas. (e.g., if there is the financial advantage $1,000, then mark 1000 in the blank. Likewise, if there is the financial disadvantage ($1.000) then mark-1000 in the blank. Please use the negative sign in front of your answer to indicate financial disadvantage.) No Partial Points Allowed.
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