Sahara industries has three product linen: A, Band C. The following annual intormation is avalable: Sales...
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Sahara industries has three product linen: A, Band C. The following annual intormation is avalable: Sales Variable costs Contribution margin Avoidable fixed costs Unavoidable fixed costs Operating incomelloss) ProductA $100,000 70.000 24,000 9,000 6.000 S0,000 Product . 590,000 40.000 42.000 18,000 2.000 $15,000 ProductC S88,000 20.000 9,000 3,000 9400 $(3,400) Sahara industries in thinking about dropping Product C because it is mporting a los. Asume Sahara Industries drops Product Cand the space formerty used to produce Product Cis rented out for $15,000 per year. What will happen to operating Income? A. increase by $6.600 B. increase by $14,400 OC. increase by $15,000 OD. increase by $9.000 Sahara industries has three product linen: A, Band C. The following annual intormation is avalable: Sales Variable costs Contribution margin Avoidable fixed costs Unavoidable fixed costs Operating incomelloss) ProductA $100,000 70.000 24,000 9,000 6.000 S0,000 Product . 590,000 40.000 42.000 18,000 2.000 $15,000 ProductC S88,000 20.000 9,000 3,000 9400 $(3,400) Sahara industries in thinking about dropping Product C because it is mporting a los. Asume Sahara Industries drops Product Cand the space formerty used to produce Product Cis rented out for $15,000 per year. What will happen to operating Income? A. increase by $6.600 B. increase by $14,400 OC. increase by $15,000 OD. increase by $9.000
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Related Book For
Introduction to Statistics and Data Analysis
ISBN: 9781337793612
6th edition
Authors: Roxy Peck, Chris Olsen, Tom Short
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