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Target Corporation has two product lines:Irons and Steamers, as follows: IronsSteamersTotal Sales revenue$650,000$260,000$910,000Variable expenses$490,000$210,000$700,000Contribution margin$160,000$50,000$210,000Fixed expenses$90,000$90,000$180,000Operating income (loss)$70,000-$40,000$30,000 If Target Corporation can eliminate fixed costs
Target Corporation has two product lines:Irons and Steamers, as follows:
IronsSteamersTotalSales revenue$650,000$260,000$910,000Variable expenses$490,000$210,000$700,000Contribution margin$160,000$50,000$210,000Fixed expenses$90,000$90,000$180,000Operating income (loss)$70,000-$40,000$30,000
If Target Corporation can eliminate fixed costs of $33,000 and increase the sale of Irons by 6500 units at a selling price of $33 per unit and a contribution margin of $11 per unit, then discontinuing the Steamers should result in which of the following?
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