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  1. business
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  3. your retail store's accountant prepared the follow

Your Retail Store's accountant prepared the following income statement for the ladie line Sales Less...

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Accounting

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Your Retail Store's accountant prepared the following income statement for the ladie line Sales Less Vadable expenses $3,050,000 433,500 1616 500 Contribution margin Less: Fixed expenses: Wages Insurance on inventory Advertising $1,098,000 61,000 671.000 1830,000 $ (213,500) Net operating income (loss) Management is concerned about the loss and is considering dropping the product line. If the product line is cropped, a job has to be created elsewhere for a long-term employee currently earning an annual salary of $91 500 Required: Calculate the increase or decrease in the operating income in both alternatives. Keep Accesories Product Drop Accesories Product Line $ 3,050,000 1,433,500 $ 1,616,500 $ 30,500,000 1,433 500 $ 1616,500 Sales Less: Variable expenses Contribution margin Fixed expenses TIHH Less Wages expenses Add Insurance on inventory expenses Add Advertising expenses Net operating come downloader X 1,006,500 61000 671,000 11.880,000 67100011 111.738,500 IS213500.00 122.000 Formulared coloridor correct na paleta de cocted

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