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ABC Company sells three products. Income statements for the three products for the mostrecent year appear below:

                                            Product A          Product B          Product C
Sales revenue  ......................        $120,000           $180,000          $145,000
Costs:     Variable costs .................          78,000             54,000            87,000
     Advertising ....................          10,000              7,000             8,000     Rent ...........................          10,000             10,000            10,000     Supervisor's salary ............          25,000             35,000            30,000     Property taxes .................          12,000              6,000             2,000
Net income/loss .....................         <15,000>            68,000             8,000The rent is allocated to the three products equally and the property taxes are allocatedbased on the square footage each product uses in the factory.The president of the company is considering eliminating Product A.Calculate the decrease in company profits if Product A is dropped. Do not use decimals ortype the word decrease after your answer. Additionally, do not enter your answer with aminus sign in front of the number.

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inia

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ABC prod a.xlsx
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inia

ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing e

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Npv Co.xlsx
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100% (2 ratings)