Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a study has been conducted to determine if product

A study has been conducted to determine if Product A should be dropped. Sales of...

50.1K

Verified Solution

Question

Accounting

A study has been conducted to determine if Product A should be dropped. Sales of the product total $200,000 per year; variable expenses total $140,000 per year. Fixed cost charged to the product total $90,000 per year. The company estimates that $65,000 of these fixed costs can be avoided if the product is dropped .These data indicate that if Product A is dropped, the contribution margin lost will equal:

Select one:

a. $110,000

b. $60,000

c. $65,000

d. $135,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

4. (a) Describe the advantages and disadvantages of using a stratified sample design in a survey....

Statistics
Q

APPLY: Explain how the caregiving experiences of securely attached infants promote development of emotional self-regulation. REVIEW: How do...

Psychology
Q

Description of the Organization. Description of Factors that Contribute to the Creative Climate Description of the Creativity...

General Management
Q

Describe (50 to 80 words) the process to add a costing unit to an accounting system.

Accounting
Q

Factor the following expression completely: 9w(3w+1) + 3w+1

Basic Math
Q

25 Significant does not mean important Never forget that even small effects can be statistically...

Statistics
Q

To measure the height of a building, a person stands away from the base and...

Calculus
Q

Simplify the following expressions completely A 4 B 64

Algebra
Q

Expand the logarithm log O log 4 2log x log3 y 1 3 2x y...

Algebra
Q

Muggsy Bogues Company purchased equipment for $212,000 on October 1, 2014. It is estimated that...

Accounting
Q

List of Accounts Accounts Payable Accounts Receivable Accrued Liabilities Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment...

Accounting
Q

covid19 impacts on banks ( conventional, Islamic, foreign investment, international) in any GCC (excluding UAE)...

Finance