Question
This is a income statement from last year for starbucks latte: Sales $260000 Variable expenses $300000 Contribution margin $45000 Fixed expenses $4000 If the Starbucks
This is a income statement from last year for starbucks latte:
| Sales | $260000 |
| Variable expenses | $300000 |
| Contribution margin | $45000 |
| Fixed expenses | $4000 |
If the Starbucks discontinued making latte, it could avoid $30000 per year in fixed costs. The remainder of the fixed costs are not avoidable. The annual financial advantage/disadvantage for the company discontinuing latte would be:
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Horngrens Cost Accounting A Managerial Emphasis
Authors: Srikant Datar, Madhav Rajan
16th Global Edition
1292211547, 9781292211541
