Explain the three product lines


Riverside Industries has three product lines: A, B and C. The following information is available: Product A Product B Product C Sales $100,000 $90,000 $44,000 Variable costs 76,000 48,000 35,000 Contribution margin 24,000 42,000 9,000 Avoidable fixed costs 9,000 18,000 3,000 Unavoidable fixed costs 6,000 9,000 7,700 Operating income $9,000 $15,000 $(1,700) Riverside Industries is thinking about dropping Product C because it is reporting a loss. Assume Riverside Industries drops Product C and does not replace it. What will happen to operating income?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Explain the three product lines
Reference No:- TGS0674273

Expected delivery within 24 Hours