How would discontinuation of Product line B affect net income?
12. Bubblemania has three product lines - A, B, and C. A B C Total Sales $10,000 Variable costs Contribution Margin Fixed costs Net income 9,000 12,000 7,000 6,000 2,000 6,000 6,000 3,000 31,000 17,500 13,500 12,500 1,000 4,500 5,500 3,500 2,000 (4,000) 3,000 Product line B appears unprofitable, and management is considering discontinuing the line. How would the discontinuation of Product line B affect net income? a. increase by $4,000 b. decrease by $4,000 c. increase by $2,000 d. decrease by $2,000 e. increase by $6,000
Attachments:
Answers
Status NEW
Posted 18 Dec 2017 03:12 PM
My Price 10.00
----------- Â ----------- H-----------ell-----------o S-----------ir/-----------Mad-----------am ----------- Th-----------ank----------- yo-----------u f-----------or -----------usi-----------ng -----------our----------- we-----------bsi-----------te -----------and----------- ac-----------qui-----------sit-----------ion----------- of----------- my----------- po-----------ste-----------d s-----------olu-----------tio-----------ns.----------- Pl-----------eas-----------e p-----------ing----------- me----------- on----------- ch-----------at -----------I a-----------m o-----------nli-----------ne -----------or -----------inb-----------ox -----------me -----------a m-----------ess-----------age-----------
Not Rated(0)
