cutboymon

20.03.2020 • 

Business

Alta Loma Industries has three product lines, A, B, and C. The following information is available:

A B C
Sales $100,000 $90,000 $36,000
Variable costs 76,000 48,000 27,000
Contribution margin $24,000 $42,000 $9,000
Fixed costs:
Avoidable 9,000 18,000 3,000
Unavoidable 6,000 9,000 8,400
Operating income $9,000 $15,000 $(2,400)

Assume that product line C is discontinued and replaced with product line B. This will double the production and sales of product line B without increasing fixed costs. Operating income will:

Ответ:

arnold2619

16.11.2020

Business

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Either using its low-cost edge to underprice competitors and attract price-sensitive buyers in large enough numbers to increase total profits or refraining from price cutting and using the low-cost advantage to earn a bigger profit margin

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