Pope Company produces a model fan, which currently has a net loss. Below are its sales...

  

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Pope Company produces a model fan, which currently has a net loss. Below are its sales and costs Sales revenue Less: Variable costs Contribution margin Less: Direct fixed costs Segment margin Less: Common fixed costs Net operating income (loss) $124,754 61,259 $? 57,386 $? 53,936 $? Eliminating the model fan product line would eliminate all of direct fixed costs. All of the common fixed costs would be redistributed to Pope's remaining product lines. By how much will Pope's net operating income increase or decrease if the fan is eliminated? If net income decreases, indicate with a-. Example, if net income decreases $1,000. Indicate 1,000. Pope Company produces a model fan, which currently has a net loss. Below are its sales and costs Sales revenue Less: Variable costs Contribution margin Less: Direct fixed costs Segment margin Less: Common fixed costs Net operating income (loss) $124,754 61,259 $? 57,386 $? 53,936 $? Eliminating the model fan product line would eliminate all of direct fixed costs. All of the common fixed costs would be redistributed to Pope's remaining product lines. By how much will Pope's net operating income increase or decrease if the fan is eliminated? If net income decreases, indicate with a-. Example, if net income decreases $1,000. Indicate 1,000.

Answer rating: 100% (QA)

SOLUTION Sales revenue 124754 Variable costs 61259 Contribution m... View the full answer