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Author Question: ABC Corporation makes mattresses in three sizes: twin, queen and king. Twin mattresses have shown a ... (Read 273 times)

M1ch3a

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ABC Corporation makes mattresses in three sizes: twin, queen and king. Twin mattresses have shown a loss for several years, similar to the operating loss shown below:

TwinQueenKing
Sales$150,000$250,000$280,000
Variable costs   75,000 150,000 190,000
Contribution margin75,000100,00090,000
Fixed costs   80,000   80,000   80,000
Operating income($  5,000)$ 20,000$  10,000

None of the fixed costs are avoidable. What will be the total operating income for the corporation if twin mattresses are discontinued?
◦ $105,000 profit
◦ $30,000 profit
◦ $50,000 loss
◦ $15,000 loss


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Marked as best answer by M1ch3a on Feb 5, 2023

Asfa

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M1ch3a

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Reply 2 on: Feb 5, 2023
Wow, this really help


raenoj

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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