Business
Business, 06.10.2019 04:30, MrRandomUser

Carrie corporation makes three products: a standard model, a deluxe model, and a luxury model. the financial statements of the products are as follows: standard model deluxe model luxury model total sales revenue $ 90,000 $ 70,000 $ 50,000 $ 210,000 variable costs 30,000 35,000 25,000 90,000 contribution margin 60,000 35,000 25,000 120,000 less fixed costs: salaries 12,000 20,000 4,000 36,000 rent 10,000 10,000 10,000 30,000 administrative 20,000 10,000 8,000 38,000 operating profit (loss) $ 18,000 $ (5,000 ) $ 3,000 $ 16,000 if the deluxe model product line was discontinued, all variable costs for that line could be avoided and $10,000 of the salaries associated with that model could be avoided. the other fixed costs are unavoidable. if the deluxe model product line is dropped, how will the company's operating profit be impacted?

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