Business, 15.11.2019 19:31 zanaplen27
Toxemia salsa company manufactures five flavors of salsa. last year, toxemia generated net operating income of $40,000. the following information was taken from last year's income statement segmented by flavor (brackets indicate a negative amount):
wimpy mild medium hot atomic
contribution margin $(2000) $45,000 $35,000 $50,000 $162,000
segment margin $(16,000) $(5000) $7000 $10,000 $94,000
segment margin less allocated common fixed expenses
$(26,000) $(15,000) $(3000) $0 $84,000
toxemia expects similar operating results for the upcoming year. if toxemia wants to maximize its profitability in the upcoming year, which flavor or flavors should toxemia discontinue? a no flavors should be discontinued b wimpy c wimpy and mild d wimpy, mild, and medium
Answers: 2
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Toxemia salsa company manufactures five flavors of salsa. last year, toxemia generated net operating...
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