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Salty Pretzels Corporation has three product lines, Cinnamon, Chocolate, and Sea salt. The following information is available: Sales Cinnamon $100,000 76.000 $24,000 Chocolate Sea Salt
Salty Pretzels Corporation has three product lines, Cinnamon, Chocolate, and Sea salt. The following information is available: Sales Cinnamon $100,000 76.000 $24,000 Chocolate Sea Salt $90,000 $88,000 48,000 79,000 $42,000 $9,000 Variable costs Contribution margin Fixed costs: Avoidable Unavoidable Operating income 3,000 9,000 6,000 $9.000 18,000 9.000 $15,000 9.700 $(3,700) Requirements: a. Should any product line be eliminated/discontinued? Explain why or why not. Show all calculations
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