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Save Answer QUESTION 1 5 points Talal Corporation hias tiro products AB1 and AB2. The corporation is considering to drop products AB1 or AB2. Information
Save Answer QUESTION 1 5 points Talal Corporation hias tiro products AB1 and AB2. The corporation is considering to drop products AB1 or AB2. Information from the company's accounting system appear belon Products ABI FILT-I56 00 LOOD SB30.000 FS2000 DONET Sis@dec Sales Variable expenses Fixed manufacturing expenses Fixed selling and administrative expenses TETETTE AB2 $150 000 S200.000 $90.000 S36000 SL Al fixed expenses of the company are fully allocated to products in the companies accountme system. Further investigation has revealed that 20% of the fixed manufacturing expenses and 30% of the fixed selling and administrative expenses razoidable if product AB1 is discontinued. The investigation also shows that one thud of the fixed manufacturing expenses and two-third oht Eixed selling and administrata e expenses are avoidable if product AB2 is discontinued Required: a. What is the net operating income earned by product ABF according to the companies accounting system? b. What is the net operating income earned by produceAB according teule coepanas decourting system? c. What is the financial advantage (disadvantags) bi dropping-pradeCE AB 12Should product AB1 be dropped? d. What is the financial advantage (disadvantage of dropping productAB20 Should product AB be dropped? For the toolbar, press ALT+F10 (PC) or ALT-FN+F10 (Mac). Paragraph Ariai FO2T I K > x T IT 1 HI T (3)
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