Maurice Tutor

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Teaching Since: May 2017
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 30 Jul 2017 My Price 7.00

Contribution margin

1.A company has three product lines, one of which reflects the following results:

 

 

 

Sales 330,000

 

Variable expenses 170,000

 

Contribution margin 160,000

 

Fixed expenses 190,000

 

Net loss (30,000)

 

 

 

If this product line is eliminated, 70% of the fixed expenses can be eliminated and the other 30% will be allocated to other product lines. If management decides to eliminate this product line, the company's net income will

 

  1. increase by $103,000
  2. decrease by $103,000
  3. decrease by $27,000
  4. increase by $30,000

I need all work shown for this problem

Answers

Maurice Tutor
(5)
Status NEW Posted 30 Jul 2017 10:07 PM My Price 7.00

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