Extreme Sports sells logo sports merchandise. The company is contemplating whether or not to continue...
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Extreme Sports sells logo sports merchandise. The company is contemplating whether or not to continue its custom embroidery service. All of the segment's direct fixed costs can be avoided if the segment is dropped. The information below is available for the segments. Complete the table and answer the questions below it. Round all answers to the nearest whole number. Custom Embroidery Logo Apparel Company Total Company Total without Custom Embroidery Sales $54,000 $240,000 $294,000 $ Variable costs $30,000 $100,000 $130,000 Contribution Margin $24,000 $140,000 $164,000 $ Direct Fixed Costs $25,000 $35,000 $60,000 $ Allocated Common Fixed Costs $10,000 $45,000 $55,000 Net Income $11,000 $60,000 $49,000 $
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