Question: Ankeil Corp. is deciding whether to keep or drop product SL412. Data from the company's accounting system regarding the product is as follows: Sales Variable
Ankeil Corp. is deciding whether to keep or drop product SL412. Data from the company's accounting system regarding the product is as follows: Sales Variable expenses Fixed manufacturing expenses Fixed selling and administrative expenses $840, eee $421,000 $ 267,200 $215, eee All fixed expenses of the company are fully allocated to products in the company's accounting system. If product SL412 is discontinued, $204.500 of the fixed manufacturing expenses and $119,500 of the fixed selling and administrative expenses are avoidable Required: a. According to the company's accounting system, what is the net operating income earned by product SL412? (Net losses should be Indicated by a minus sign.) b. What would be the financial advantage (disadvantage) of dropping product SL412? Should the product be dropped? a. Net operating income (oss) Financial advantage (disadvantage) b The product dropped ho
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