Based on the segment income statement below sorbet is

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Reference no: EM13452206

Based on the segment income statement below, Sorbet is considering eliminating its Mango line.

Revenue from Mango sales

$500,000

Salaries for Mango workers

(100,000)

Direct material

(300,000)

Sunk costs (equipment depreciation)

(75,000)

Allocated company-wide facility-sustaining costs

(50,000)

Net loss

$ (25,000)

Required:

Identify each cost as being relevant or not relevant in this decision.

Reference no: EM13452206

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