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The income statement information for Ivanhoe follows: Premium Regular Sales units 170 kg 170 kg Royal 170 kg Total 510 kg Sales $ 3,740
The income statement information for Ivanhoe follows: Premium Regular Sales units 170 kg 170 kg Royal 170 kg Total 510 kg Sales $ 3,740 $ 2,720 $ 3,060 $ 9,520 Variable costs 2,380 1,700 1,836 5,916 Contribution margin 1,360 1,020 1,224 3,604 Production line fixed costs" 1,088 1,233 884 3,205 Corporate costs (allocated)** 153 136 179 468 Total fixed costs 1,241 1,369 1,063 3,673 Operating income (loss) 119 $ (349 ! $ 161 (69) 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. Your answer is incorrect. Using the general decision rule, which product should the corporation emphasize? Emphasis order eTextbook and Media Your answer is partially correct. 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 should be dropped. Operating income/(loss) $ eTextbook and Media Your answer is incorrect. 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 eTextbook and Media kg
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