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Wildhorse Toys' management is considering eliminating product A, which has been showing a loss for several years. The company's annual income statement, is as
Wildhorse Toys' management is considering eliminating product A, which has been showing a loss for several years. The company's annual income statement, is as follows: B C Total Sales $2.235,000 $1,410,000 $1,806,500 $5,451.500 Variable expenses 1,658,000 601.200 1,099,800 3,359,000 Contribution margin $577,000 $808.800 $706,700 $2,092,500 Advertising expense $520,000 $429,000 $521,000 $1,470,000 Depreciation expense 16,700 Corporate expenses 92.300 Total fixed expenses $629,000 10,700 84,100 $523,800 21.500 106,600 $649,100 $1,801,900 48,900 283,000 Operating income $(52,000) $285,000 $57,600 $290,600 Recent Resume.par Advertising expense-Specific to each product. Depreciation expense-Specific to each product: no other use available. no resale value. Corporate expenses-Allocated based on number of employees. Show All
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