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Trying to tackle this problem https/ewconnect.mhedu k#90 Case 14-62 Drop a Product Line (LO 14-4, 14-5) Ontario Pump Company, a small manufacturing company in Toronto,

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https/ewconnect.mhedu k#90 Case 14-62 Drop a Product Line (LO 14-4, 14-5) Ontario Pump Company, a small manufacturing company in Toronto, Ontario, many years the manufactures three types of pumps used in a variety of applications. For company has been profitable and has operated at capacity. However, in the last two years prices on all pumps were reduced and selling expenses increased to meet competition and keep the plant operating at capacity. Second-quarter results for the ed current year, which follow, typity recent experience ONTARIO PUMP COMPANY Income Statement Second Quarter (in thousands) R-Pump F-Pump S-Pump Total Sales Cost of goods sold $5.676 $3,498 $3,360 $12.534 3718 2.993 3,546 10.257 Gross margin Selling and administrative expenses $1958 505 (186) $ 2.277 1.313 719 504 2.536 income before taxes s 645 S (214) $ (690) (259) ?Prey 90, 10 Next> 6 7 8 9 0

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