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Sheffield Crunchers has three product lines. Its only unprofitable line is Sheffield Nuts. The results for 2022 are as follows: Sales $349000 Variable costs 229000
Sheffield Crunchers has three product lines. Its only unprofitable line is Sheffield Nuts. The results for 2022 are as follows:
Sales | $349000 |
Variable costs | 229000 |
Fixed costs | 170000 |
Net loss | $(50000) |
If this product line is eliminated, 25% of the fixed costs can be eliminated. How much are the relevant costs in the decision to eliminate this product line?
$399000
$271500
$42500
$316250
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