Question 9.1 (Total: 20 marks) 1When Rosana, CFO of Hydie Inc., first evaluated the segmented...
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Accounting
Question 9.1 (Total: 20 marks) 1When Rosana, CFO of Hydie Inc., first evaluated the segmented income statement below, he flew into his usual rage: "When are we having losses in our product lines, I would rather eliminate them." Product Lines U Sales Variable expenses Contribution margin Traceable fixed expenses Common expenses, allocated Operating income (loss) Total $250,000 $119.000 $131,000 $98.000 $32.900 $100 $100,000 $37.500 $63,000 $31,000 $18.000 $14.000 V W $75,000 $75,000 $35.000 $47.000 $40,000 $28,000 $37.000 $30,000 $10.500 $4.400 $(7.500) $16.400) *These traceable expenses could be eliminated if the product lines to which they are traced were discontinued Required: Recommend which segments, if any, should be eliminated. Prepare a report in good form to support your answer. Show all the necessary calculations
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