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The Plate Company manufactures and sells two lines of plates. During the most recent accounting period, the Glass line and the Plastic line sold 15,000
The Plate Company manufactures and sells two lines of plates. During the most recent accounting period, the Glass line and the Plastic line sold 15,000 and 2,000 units, respectively. The company's most recent financial statements are shown below: The company is considering whether or not to eliminate the plastic line of plates. The rent expense and other corporate facility expenses are unavoidable expenses. A. Indicate whether each cost is relevant (Yes) or not relevant (No) to the decision to eliminate the plastic line: Unit-level production cost _____ Rent expense _____ Unit-level SG&A expenses _____ Other corporate facility expenses _____ B. Based on this information, should Plate eliminate the plastic line? Support your answer with calculations showing the impact on Plate's net income if the plastic line is eliminated, and be sure to show your work
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