Question: Survey Dyed S CH Read ou 9 600 Licnep Ltd. has three major product lines, soda, juice and ice cream. Licnep is considering discontinuing
Survey Dyed S CH Read ou 9 600 Licnep Ltd. has three major product lines, soda, juice and ice cream. Licnep is considering discontinuing producing ice cream because the divisional income statement indicates it is being sold at a loss. The most recent annual income statement is outlined below: Soda Juice Ice Cream thin (000s) (000s) (000) Sales $48,330 $44.980 $26,230 Variable costs 16,500 19,600 12,700 Fixed costs 21,800 24,400 18,300 Operating income $10,030 $ 980 ($4,770) The fixed costs include fixed costs directly attributable to each product line as well as a common costs. The portion of directly attributable fixed costs included in total fixed corts is 40 for soda, 75% for juice and 55% for ice cream. Teal Required: 10 days after to be reliable vendors Should Licnep Ltd. discontinue making ice cream? Q Search ander. Pitt Trai has fok
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
