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  3. #1: continue or discontinue / keep or eliminate (6

#1: Continue or Discontinue / Keep or Eliminate (6 points) Lundgren Winery is contemplating discontinuing...

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#1: Continue or Discontinue / Keep or Eliminate (6 points) Lundgren Winery is contemplating discontinuing one of its wine labels. The sales for the label total $615,000 per year and variable costs total $350,000 per year. Fixed expenses incurred by the department are $325,000 per year of which $45,000 are unavoidable even if the label is discontinued. Should Lundgren Winery discontinue the label? What is the incremental net income or net loss if the winery chooses to discontinue the label

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