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The following additional information is available: * The factory rent of $3,900 assigned to Product C is avoidable if the product were dropped. * The
The following additional information is available: |
* | The factory rent of $3,900 assigned to Product C is avoidable if the product were dropped. | |
* | The company's total depreciation would not be affected by dropping C. | |
* | Eliminating Product C will reduce the monthly utility bill from $3,900 to $2,070. | |
* | All supervisors' salaries are avoidable. | |
* | If Product C is discontinued, the maintenance department will be able to reduce monthly expenses from $6,360 to $4,259. | |
* | Elimination of Product C will make it possible to cut two persons from the administrative staff; their combined salaries total $3,480.
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