The Wood Company processes two types of wood, poplar, and maple, into window blinds. Last year's...
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The Wood Company processes two types of wood, poplar, and maple, into window blinds. Last year's operating profits were as follows: Sales revenue Variable expenses Contribution margin Fixed expenses Segment net income Poplar $100,000 70.000 30,000 35.000 $(5.000) Maple $150,000 90.000 60,000 45.000 $15.000 If the Poplar line is dropped due to lack of profitability, 20% of its fixed expenses could be eliminated. What would the operating income of Wood Company have been last year if the Poplar line had been dropped before the year began? The Wood Company processes two types of wood, poplar, and maple, into window blinds. Last year's operating profits were as follows: Sales revenue Variable expenses Contribution margin Fixed expenses Segment net income Poplar $100,000 70.000 30,000 35.000 $(5.000) Maple $150,000 90.000 60,000 45.000 $15.000 If the Poplar line is dropped due to lack of profitability, 20% of its fixed expenses could be eliminated. What would the operating income of Wood Company have been last year if the Poplar line had been dropped before the year began?
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If the Poplar line is dropped 20 of its fixed expenses will be eliminated whi... View the full answer
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
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