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The income statement information for Coronado follows: Premium Regular Royal Total Sales units 145 kg 145 kg 145 kg 435 kg Sales $ 3,190 $
The income statement information for Coronado follows: Premium Regular Royal Total Sales units 145 kg 145 kg 145 kg 435 kg Sales $ 3,190 $ 2,320 $ 2,610 $ 8,120 Variable costs 2,030 1,450 1,566 5,046 Contribution margin 1,160 870 1,044 3,074 Production line fixed costs* 928 1,051 754 2,733 Corporate costs (allocated)** 131 116 152 399 - Total fixed costs 1,059 1,167 906 3,132 - - - Operating income (loss) $ | 101 101 $ (297 ? A|| 138 $ (58) || If the company drops the product, these costs are no longer incurred. ** None of these corporate costs are expected to change if a product line is dropped. Using the general decision rule, which product should the corporation emphasize? Emphasis order Using the general decision rule, should the corporation drop Regular (assuming no changes in demand for other products)? Show how operating income would change if Regular were dropped. (Show a loss preceded by a minus sign, e.g. -200 or (200).) Regular be dropped. Operating income/(loss) $ At what point (in kg) would the managers be indifferent to dropping Regular? In other words, what is the breakeven point for Regular? (Round answer to O decimal places, e.g. 125.) Breakeven point kg
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