Question
Use information below to calculate the change in Net Income if the Paper Towel segment is eliminated.ItemRevenueLess: TVCTCMLess: FC.AdvertisingGen. and Admin.TotalsFacial Tissue33000(11.000)22.000Bathroom Tissue50000(10000)40000Paper Towels25000(12,500)12500Totals108.000(33 500)74500(15000)(8000)(7000)(5000)(4000)2000(13000)28000(7500)If
Use information below to calculate the change in Net Income if the Paper Towel segment is eliminated.ItemRevenueLess: TVCTCMLess: FC.AdvertisingGen. and Admin.TotalsFacial Tissue33000(11.000)22.000Bathroom Tissue50000(10000)40000Paper Towels25000(12,500)12500Totals108.000(33 500)74500(15000)(8000)(7000)(5000)(4000)2000(13000)28000(7500)If the Paper Towel segment is eliminated, costs specific to the segment will be affected as follows:a.bThe Advertising costs will be cut in half with the rest being absorbed by the other segments;The General and Administrative costs will be unaffected.
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