The income statement information for

The income statement information for

Question # 00211781 Posted By: solutionshere Updated on: 03/03/2016 03:24 PM Due on: 04/02/2016
Subject Accounting Topic Accounting Tutorials:
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Product Emphasis and Keep or Drop, Product Breakeven, Relevant Information

The income statement information for Waterford Ginseng Growers follows:

PremiumRegularRoyalTotal
Sales units100 kg100 kg100 kg300 kg
Sales$2,200$1,600$1,800$5,600
Variable costs1,4001,0001,0803,480
Contribution margin8006007202,120
Production line fixed costs*6407255201,885
Corporate costs (allocated)**9080105275
Total fixed costs7308056252,160
Operating income (loss)$ 70$ (205)$ 95$ (40)


REQUIRED

A. Using the general decision rule, which product should the corporation emphasize? Support your answer with calculations.

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    Tutorial # 00206802 Posted By: solutionshere Posted on: 03/03/2016 03:24 PM
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