Extra Wet Products, Inc. makes two product lines, sinks and bathtubs.

Sinks generate $300 in revenue and have total variable costs of $200. Direct fixed costs related to sinks are $150.

Bathtubs generate $700 in revenue and have total variable costs of $300. Direct fixed costs related to bathtubs are $300.

Facility costs are $100, half of which is allocated to each product line.

What is the change in cash flow for Extra Wet Products if it eliminates the sink product line?

Answer rating: 100% (QA)

Answer i To calculate the change in cash flow we need to compare the current cash flow to the new cash flow after the change However the question does... View the full answer