kaitlynn73
16.04.2020 •
Mathematics
Vaughn Manufacturing has three product lines. Its only unprofitable line is Corn Nuts, the results of which appear below for 2019:Sales$1530000Variable expenses1040000Fixed expenses600000Net loss$ (110000)If this product line is eliminated, 30% of the fixed expenses can be eliminated. How much are the relevant costs in the decision to eliminate this product line
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Ответ:
The relevant costs are $18000 in the decision to eliminate this product line.
Step-by-step explanation:
Since we have given that
Sales = $1530000
Variable expenses = $1040000
Fixed expenses = $600000
Net loss = $110000
If product line is eliminated, 30% of the fixed expenses can be eliminated.
So, it becomes,
30% of $600000 is given by
Hence, the relevant costs are $18000 in the decision to eliminate this product line.
Ответ: