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Trampoline Inc is considering dropping its water toy department due to continued net operating losses. Results for the most recent year for the water toy

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Trampoline Inc is considering dropping its water toy department due to continued net operating losses. Results for the most recent year for the water toy department is shown belowe Amount Description Sales (6,000 units) Variable expenses Contribution margin Fixed expenses Net operating loss $100,000 $72,000 $36,000 $60,000 (524,000) If the water toy department were discontinued, the company would still incur $20,000 per year offered costs. The remainder of the feed costs are wordable The annual financial advantage (disadvantage) for the company from discontinuing the production and sales of the water toy department would be A 516,000 disadvantage B 516,000 advantage . 54.000 disadvantage $4,000 advantage

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