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Question Licuado Juice Company has four product lines: Orange, Tomato, Carrot,

Question : Question Licuado Juice Company has four product lines: Orange, Tomato, Carrot, : 1030658

Question

Licuado Juice Company has four product lines: Orange, Tomato, Carrot, and Grape. Shown below is last year's income statement segmented by product line:

.........................................................Orange..............Tomato.........Carrot.............Grape

Net operating income last year for Licuado Juice Company as a whole was $ 24,800

If the Tomato product line would have been dropped at the beginning of last year, how would this have changed the net operating income of Licuado Juice Company as a whole?

a) $ 2,400 increase

b) $ 12,000 decrease

c) $ 5,400 increase

d) $ 12,800 decrease

sales

$        60,000

$        32,000

$        24,000

$        44,000

variable expenses

22800

11200

12000

17600

contribution margin

           37,200

           20,800

           12,000

           26,400

traceable fixed expenses

12000

8000

9000

6600

segment margin

$        25,200

$        12,800

$          3,000

$        19,800

 

Solution
5 (1 Ratings )

Solved
Finance 1 Year Ago 61 Views
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