What will the operating income, Accounting Basics

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What will the operating income

Riverside Industries has three product lines, A, B, and C. The following information is available:

A B C

Sales $100,000 $90,000 $44,000

Variable costs 76,000 48,000 35,000

Contribution margin $24,000 $42,000 $9,000

Fixed costs:

Avoidable 9,000 18,000 3,000

Unavoidable 6,000 9,000 7,700

Operating income $9,000 $15,000 $(1,700)

Riverside Industries is thinking of dropping product line C because it is reporting a loss. Assuming Riverside drops line C and does not replace it,what will the operating income ?

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Accounting Basics: What will the operating income

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Accounting Basics: What will the operating income

Reference No:- TGS076917

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Recent Questions Asked Accounting Basics

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Reference No:- TGS076917

Recent Questions Asked Accounting Basics

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