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The management of Diamantes Sauce Factory is considering dropping their Salsa product line. The product line has revenue of $135,000, variable cost of goods sold
The management of Diamantes Sauce Factory is considering dropping their Salsa product line. The product line has revenue of $135,000, variable cost of goods sold of $70,000, fixed costs of $40,000 and variable operating expenses of $35,000, creating a loss from operations of $10,000. What is the differential profit or loss from discontinuing Salsa?
Group of answer choices
$65,000 loss
$10,000 profit
$30,000 loss
$30,000 profit
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