Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. fruit pie inc. has three product linesstrawberry,

Fruit Pie Inc. has three product linesStrawberry, Cherry, and Apple. The following information is available:...

90.2K

Verified Solution

Question

Accounting

Fruit Pie Inc. has three product linesStrawberry, Cherry, and Apple. The following information is available:
Strawberry Cherry Apple
Sales revenue $90,000 $40,000 $30,000
Variable costs (40,000) (5000) (10,000)
Contribution margin $50,000 $35,000 $20,000
Fixed costs (15,000) (15,000) (23,000)
Operating income (loss) $35,000 $20,000 $(3000)
The company is deciding whether to drop product line Apple because it has an operating loss. Assuming fixed costs are unavoidable, if Fruit Pie Inc. drops product line Apple and rents the space formerly used to produce product Apple for $18,000 per year, total operating income will be ________.
Group of answer choices
$23,000
$20,000
$50,000
$10,000

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

What evidence in the highlighted passage from Section 15 suggests Brutus does NOT want Caesar's...

Biology
Q

QUESTION 4 What nucleic acid related characteristic distinguish between prokaryotic and eukaryotic cells For the...

Biology
Q

The number of permutations of n different objects is n n n 1 n 2...

Geometry
Q

Multiply in the indicated base 6AB12 8912 X X 6AB12 8912

Calculus
Q

10 B 150 a 10 b

Algebra
Q

How would this problem be solved using Excel. Question 10:...

Accounting
Q

Division A manufactures a circuit board component with unit variable product cost of $38 and...

Accounting
Q

Employees are not subject to a. federal withholding tax. b. Medicare tax....

Accounting
Q

The following selected information was taken from the accounts of Mario Company on December 31,...

Accounting
Q

Delta Corporation is considering an investment of $400,000 in a new machine, which belongs to...

Accounting
Q

Lawrence Inc., a retail company, is currently assessing alternative financing options associated with the acquisition...

Accounting
Q

You have been accepted into college. The college guarantees that your tuition will not increase...

Finance