Question 10 bailey company manufactures and sells a

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Question 10Bailey Company manufactures and sells a number of products, including Product R.Results from last year from the sale of Product R appear below:Sales revenue.............................$750,000Variable production costs.................450,000Sales commissions.........................110,000Salary of product manager.................Advertising expense.......................80,000Allocated general overhead................Net operating loss........................<55,000>Bailey Company is considering eliminating the production and sale of Product R. Thecompany has determined that if Product R is discontinued, the contribution margin ofits other products will increase by $40,000.Based on a cost analysis, the management of Bailey Company has determined that ifProduct R is discontinued the company's net income will increase by $25,000.Calculate the amount of allocated general overhead cost for Product R incurred lastyear.??25,000=-55,000
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Term
Spring
Professor
SMITH

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