Ask Question
17 September, 02:04

The Draper Corporation is considering dropping its Doombug toy due to continuing losses. Data on the toy for the past year follow:

Sales of 15,000 units $150,000

Variable expenses 120,000

Contribution margin 30,000

Fixed expenses 40,000

Net operating loss $ (10,000)

If the toy were discontinued, Draper could avoid $8,000 per year in fixed costs. The remainder of the fixed costs are not avoidable. The annual financial advantage (disadvantage) for the company from discontinuing the production and sale of Doombugs would be:

a. $10,000

b. ($22,000)

c. $18,000

d. ($30,000)

+1
Answers (1)
  1. 17 September, 02:34
    0
    22000

    Explanation:

    I dont know I tried
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The Draper Corporation is considering dropping its Doombug toy due to continuing losses. Data on the toy for the past year follow: Sales of ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers