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Requirements Members of the board of directors of Adobe Security have received the following operating income data for the year just ended: (Click the icon
Requirements Members of the board of directors of Adobe Security have received the following operating income data for the year just ended: (Click the icon to view the operating income data.) Members of the board are surprised that the industrial systems product line is losing money. They commission a study to determine whether the company should drop the line. Company accountants estimate that dropping industrial systems will decrease fixed cost of goods sold by $81,000 and decrease fixed marketing and administrative expenses by $9,000. More Info ystems product line. me under the two te between the two this comparison? Product Line Adobe Security Total Analysis of Dropping a Product Line Industrial Household Decrease If Systems Systems Total $ 390,000 $ 400,000 $ 790,000 Sales revenue. Totals With Totals Without Industrial Systems Industrial Systems Industrial Systems Cost of goods sold: Is Dropped Variable $ 41,000 $ Sales revenue 48,000 $ 89,000 69,000 329,000 Fixed 260,000 Variable expenses: 301,000 117.000 418,000 Cost of goods sold Marketing and administrative expense Total cost of goods sold Gross profit. Marketing and administrati 89,000 283,000 372.000 expenses: Total variable expenses Variable 66,000 45.000 78.000 27,000 144,000 72,000 Fixed Contribution margin Fixed expenses: Cost of goods sold Total marketing and 111.000 105,000 216,000 administrative expenses Marketing and administrative expense $ (22,000) $ 178,000 $ 156,000 Operating income (loss). Total fixed expenses Operating income (loss) Print Done Enter any number in the edit fields and then continue to the next
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