Question: true or false : A company has two different products that sell to separate markets. Financial data are as follows: ProductA Product B Total Revenue
true or false :
A company has two different products that sell to separate markets. Financial data are as follows: ProductA Product B Total Revenue $15,000 $9,200 $24,200 Variable costs (8,000) (9,300) (17,300) Fixed costs (allocated) (4,000) (900), (4,900) Operating income (loss) $3,000 $(1,000) $2,000 Assume that fixed costs are all unavoidable and that dropping one product would not impact sales of the other. Because the contribution margin of Product B is negative, it should be droppedStep by Step Solution
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