The income statement for Bauer Online Real Estate Training is presented below. The management team at...

 

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The income statement for Bauer Online Real Estate Training is presented below. The management team at the real estate training company is not pleased with the performance of their residential real estate training line and is considering dropping it. A cost study of the residential training line has revealed that $38,219 of the Selling and $33,076 of the Administrative fixed expenses cannot be avoided if the residential real estate training line is dropped. If the management at Bauer Online Real Estate Training decides to drop the line, what will the new company net income be? Calculate your answer to the nearest whole dollar. Sales Revenue Variable Costs Contribution Margin Fixed Costs: Selling Administrative Total Fixed Expenses Operating Income (Loss) Total $527000 112000 415000 185000 203000 388000 $27000 Residential Commercial $185000 34000 151000 88000 94000 182000 $(31000) $342000 78000 264000 97000 109000 206000 $58000 The income statement for Bauer Online Real Estate Training is presented below. The management team at the real estate training company is not pleased with the performance of their residential real estate training line and is considering dropping it. A cost study of the residential training line has revealed that $38,219 of the Selling and $33,076 of the Administrative fixed expenses cannot be avoided if the residential real estate training line is dropped. If the management at Bauer Online Real Estate Training decides to drop the line, what will the new company net income be? Calculate your answer to the nearest whole dollar. Sales Revenue Variable Costs Contribution Margin Fixed Costs: Selling Administrative Total Fixed Expenses Operating Income (Loss) Total $527000 112000 415000 185000 203000 388000 $27000 Residential Commercial $185000 34000 151000 88000 94000 182000 $(31000) $342000 78000 264000 97000 109000 206000 $58000

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