Question: (5). (6). Based on the segment income statement below, Gourmet Sorbet is considering eliminating its Mango Tango line. $500,000 Revenue from Mango Tango sales (120,000)

(5).

(5). (6). Based on the segment income statement below, Gourmet Sorbet is

(6).

considering eliminating its Mango Tango line. $500,000 Revenue from Mango Tango sales

Based on the segment income statement below, Gourmet Sorbet is considering eliminating its Mango Tango line. $500,000 Revenue from Mango Tango sales (120,000) Salaries for Mango Tango workers (300,000) Direct material costs for Mango Tango (75,000) Sunk costs (equipment depreciation) Allocated company-wide facility-sustaining costs (50,000) Net loss (45,000) lf Mango Tango were eliminated, profitability would O increase $25,000 O increase $525,000. O decrease $80,000. O decrease $100,000

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