Home / Questions / Paxton Products has three productlines A B and C

Paxton Products has three productlines A B and C

Paxton Products has three productlines: A, B, and C.

           A

      B   

        C   

       Total  

Sales

$ 90,000

$ 150,000

$ 200,000

$ 440,000

Variable costs

50,000

130,000

100,000

280,000

Contribution margin

40,000

20,000

100,000

160,000

Fixed costs

45,000

  50,000

  50,000

145,000

Net income

$ (5,000)

$(20,000)

$ 50,000

$ 25,000

Management is considering dropping product lines A and B. If 50% of the fixed costs for dropped products could be avoided, what recommendation would you make to management?  Quantify you answer.

Apr 20 2018 Read more Less More

Answer (Solved)

question Subscribe To Get Solution

Recent Questions

Chat Now

Welcome to Live Chat

Welcome to MyCourseHelp Services, World's leading Academic solutions provider with Millions of Happy Students.

Please fill in the form