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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