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Author Question: Darren Company has three product lines: D, E, and F. The following information is available:DEFSales ... (Read 26 times)

nramada

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on: Jan 4, 2020
Darren Company has three product lines: D, E, and F. The following information is available:

​DEF
Sales revenue$70,000$40,000$28,000
Variable expenses$40,000$21,000$12,000
Contribution margin$30,000$19,000$16,000
Fixed expenses$12,000$15,000$17,000
Operating income (loss)$18,000$4,000$(1,000)


Darren Company is thinking of dropping product line F because it is reporting an operating loss. All fixed expenses are unavoidable. Assuming Darren Company drops product line F and does not replace it, what affect will this have on operating income?
◦ Increase $1,000
◦ Decrease $16,000
◦ Decrease $1,000
◦ Increase $16,000
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Marked as best answer by nramada on Jan 4, 2020

beccamahon

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Reply #1 on: Jan 4, 2020
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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nramada

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Reply 2 on: Jan 4, 2020
Thanks for the timely response, appreciate it

coreycathey

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Reply 3 on: Yesterday
Wow, this really help

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