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what would the impact on income be if the product line were eliminated. should it be eliminated? The following information is presented for BBQ Company:
what would the impact on income be if the product line were eliminated. should it be eliminated?
The following information is presented for BBQ Company: BBQ Company Product Lines Gas Charcoal Accessories Total $450,000 $90,000 $60,000 $600,000 110,000 40,000 15.000 $165.000 $340,000 $50,000 $45,000 $435,000 Sales revenue Variable Costs Contribution Margin Direct Fixed Costs Allocated Fixed Costs Profit (loss) 60,000 40,000 16,000 $116,000 90.000 18.000 12.000 $120.000 $190,000 $8,000) $17,000 $199,000 In light of the loss reported for the Charcoal product line, the company is thinking of eliminating this department. What would the impact on income be if the product line were eliminated? Should it be eliminated Step by Step Solution
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