Solution-Compare the effects of dropping the ski line

Compare the effects of dropping the ski line

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Reference no: EM13522028

Complete the table to compare the effects of dropping the ski line of products. Enter all amounts as positive numbers except for a net loss. If an amount is zero, enter "0". The cost data for the each department is shown below.

		Snowboards	Skateboards	Skis
Sales		$175,000	$180,000	$160,000
Less: variable expenses		70,000	36,000	56,000
	Contribution margin	$105,000	$144,000	$104,000
Less: fixed expenses:
	Salaries	$61,250	$63,000	$64,000
	Depreciation	14,000	27,000	32,000
	Advertising	4,000	9,000	48,000
Net income (loss)		$25,750	$45,000	$-40,000

	Alternatives		Differential Effect
	Keep	Drop	Increase/Decrease
Sales	$		$
Less: variable expenses
Contribution margin	$		$
Less: fixed expenses:
Salaries	$	$	$
Depreciation
Advertising
Net income (loss)	$	$	$

Reference no: EM13522028

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Compare the effects of dropping the ski line

Reference no: EM13522028

Reference no: EM13522028

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