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fant ans pleease ACE Compary manufactures two product lines: Comfy shoes and...

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Accounting

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ACE Compary manufactures two product lines: Comfy shoes and Steady handbags. It has been brought to senior management's attention that the Steady product Ine is unprofitable, and the company is considering whether or not to continue this product line, 40 of the fixed costs of Steady are direct fixed costs which would be saved if production ceased. All other fixed costs will remain the same. The following information is available for the two products: Pequired: 1. What will be the financial advantage (disadvantage) for the company if the Steady product is dropped? Would you recommend that the company drops Steady line and why? - Assume that if the Steady product line is dropped, also the sales of Comfy shoes line will decrease by 10 . What will be the fnancial advantage (disadvantage) for the compary under this alternative and what would you recommend and why? 3. According to your calculation in requirement (1) \& (2) which aiternative would be better for the company and explain why?? 4. Desermine the cost and the amount that will remain even if Steady product line is dropped

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