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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
$
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