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Problem 9-2 Deciding Whether to Add or Drop a Product (LO1- CC3)(Algo) ...

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Accounting

Problem 9-2 Deciding Whether to Add or Drop a Product (LO1- CC3)(Algo)
Pam LaRose is the chief executive of Sturdy Furniture Inc. (SFI), which makes top-quality office furniture. LaRose would like advice concerning the advisability of eliminating the model A1 table. This table has been among the company's best-selling products, but it seems unprofitable.
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A condensed statement of operating income for the company and for the model A1 table for the quarter ended September 30 follows:
\table[[,\table[[Model A1],[table]],\table[[All],[Products]]],[Sales,$2,000,000**,$8,000,000
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