Business, 01.11.2020 19:40, kyleescott8857
13. Mr. Earl Pearl, accountant for Margie Knall Co., Inc., has prepared the following product-line income data:
The following additional information is available:
* The factory rent of $1,500 assigned to Product C is avoidable if the product were dropped.
* The company's total depreciation would not be affected by dropping C.
* Eliminating Product C will reduce the monthly utility bill from $1,500 to $800.
* All supervisors' salaries are avoidable.
* If Product C is discontinued, the maintenance department will be able to reduce monthly expenses from $3,000 to $2,000.
* Elimination of Product C will make it possible to cut two persons from the administrative staff; their combined salaries total $3,000.
Required:
Prepare an analysis showing whether Product C should be eliminated.
CM 30000
-FC
Answers: 2
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13. Mr. Earl Pearl, accountant for Margie Knall Co., Inc., has prepared the following product-line i...
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