Crane Toys' management is considering eliminating product A, which has been showing a loss for...
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Crane Toys' management is considering eliminating product A, which has been showing a loss for several years. The company's annual income statement, is as follows: Advertising expense-Specific to each product. Depreciation expense - Specific to each product: no other use available, no resale value. Corporate expenses - Allocated based on number of employces. Restate the income statement in segment margin format. Your answer is correct. Restate the income statement in segment margin format. Your answer is correct. What would be the effect on income if product A were dropped? Net income would by $ Management is considering making a new product using product A's equipment. If the new product's selling price per unit were $11, its variable costs were $5, and its advertising costs were the same as for product A, how many units of the new product would the company have to sell to make the switch from product A to the new product worthwhile
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