Omar Industries manufactures two products: Regular and Super. The results of operations for 201 follow....
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Omar Industries manufactures two products: Regular and Super. The results of operations for follow. Fixed manufacturing costs included in cost of goods sold amount to $ per unit for Regular and $ per unit for Super. Variable selling expenses are $ per unit for Regular and $ per unit for Super; remaining selling amounts are fixed. Omar Industries wants to drop the Regular product line. If the line is dropped, companywide fixed manufacturing costs would fall by because there is no alternative use of the facilities. What would be the impact on operating income if Regular is discontinued?
Omar Industries manufactures two products: Regular and Super. The results of operations for follow.
Fixed manufacturing costs included in cost of goods sold amount to $ per unit for Regular and $ per unit for Super. Variable selling expenses are $ per unit for
Regular and $ per unit for Super; remaining selling amounts are fixed.
Omar Industries wants to drop the Regular product line. If the line is dropped, companywide fixed manufacturing costs would fall by because there is no
alternative use of the facilities. What would be the impact on operating income if Regular is discontinued?
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