Business, 15.04.2020 00:37, Savageboyn

Delicious Desserts is thinking about ending the production of two types of ice cream. Financial data related to the products is provided below:

Rum Raisin Blue Moon
Sales $680,000 $573,000
Variable expenses 246,000 219.000
Fixed expenses 468,000 364,000

If Delicious stops making Rum Raisin ice cream, it estimates it can eliminate 75% of the fixed costs associated with that product. Similarly, if it stops making Blue Moon, it estimates it can eliminate 70% of the fixed costs associated with that product.
Given these figures, which of the following statements is true?

A) Delicious would be worse off if it discontinues Rum Raisin and would be better off if it discontinues Blue Moon.
B) Delicious would be better off if it discontinues Rum Raisin and would be worse off if it discontinues Blue Moon.
C) Delicious would be better off if it discontinues both products.
D) Delicious would be worse off if it discontinues either product.

Answers: 1

Show answers

Other questions on the subject: Business

Business, 21.06.2019 23:30, zoseta

Highland company produces a lightweight backpack that is popular with college students. standard variable costs relating to a single backpack are given below

Answers: 1

continue

Business, 22.06.2019 11:00, mateoperkins

What is the advantage of developing criteria for assessing the effectiveness of business products and processes? a. assessment criteria are answers. b. assessment criteria are inexpensive. c. assessment criteria provide you with a list of relevant things to measure. d. assessment criteria provide you with a list of people to contact to learn more about process mentoring.

Answers: 3

continue

Business, 22.06.2019 11:30, jacky852

On average, someone with a bachelor's degree is estimated to earn times more than someone with a high school diploma. a)1.2 b)1.4 c)1.6 d)1.8

Answers: 1

continue

Business, 22.06.2019 21:30, mydoggy152

Which of the following best explains the purpose of protectionist trade policies such as tariffs and subsidies? a. they make sure that governments have enough money to pay for fiscal policies. b. they give foreign competitors access to new markets around the world. c. they allow producers to sell their products more cheaply than foreign competitors. d. they enable producers to purchase productive resources from everywhere in the world.

Answers: 1

continue

Do you know the correct answer?

Delicious Desserts is thinking about ending the production of two types of ice cream. Financial data...