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Category > Accounting Posted 11 Aug 2017 My Price 7.00

German Appliances

The income statement for German Appliances is divided by its two product lines. Toasters and Microaves, as follows:

 

Toaster Microwave Total

Sales revenue $600,000 $255,000 $855,000

variable expenses $450,000 $210,000 $660,000

contribution margin $150,000 $45,000 $195,000

fixed expenses $75,000 $75,000 $150,000

operating income(loss) $75,000 $(30,000) $45,000

 

If German Appliances can eliminate fixed costs of $32,000 and increase the sale of Toaster the sale of Toaster by $6,000 units at a selling price of $30 per unit and contribution margin of $8 per unit, then discontinuing the microwaves should result in what to total operating income?

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Maurice Tutor
(5)
Status NEW Posted 11 Aug 2017 01:08 PM My Price 7.00

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