A company is considering dropping a product line. Data from the company$$s budget for the upcoming year for this product line appear below:

Sales Revenue: $$307,000$

Variable costs: $$177,000$

Fixed manufacturing costs: $$206,000$

Fixed selling and administrative costs: $$116,000$

Further investigation has revealed that $56\%$ of the fixed manufacturing costs and $41\%$ of the fixed selling and administrative expenses would remain if the product were discontinued, but the rest of these fixed costs could be avoided.

What would be the total annual financial impact from eliminating this product? $($total and not per unit impact$)$

Answer rating: 100% (QA)

To calculate the total annual financial impact of eliminating the product line we need to consider t... View the full answer