Blaine Avenue Company manufactures three products. Profit computations for these three products for Year...

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Accounting

Blaine Avenue Company manufactures three products. Profit computations for these
three products for Year 1 are given below.
Blaine Avenue has a total of $1,000,000 in manufacturing overhead costs. Of this amount,
$700,000 is directly related to the number of product batches produced during the year.
The number of batches of the three products for Year 1 was as follows: Product X,20
batches; Product Y,30 batches; Product Z 50 batches. The remaining $300,000 in overhead
is for facility support (property taxes, security costs, general administration, etc.) and
doesn't not vary at all with the level of activity. What would total company NET INCOME
be if the Product Y line were dropped? Assume that Blaine Avenue has no other costs or
expenses except those described here.
profit of $180,000
loss of $120,000
profit of $300,000
loss of $260,000
profit of $30,000
$0- no profit or loss
loss of $270,000
profit of $40,000
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