Brothers Corp If the Talking Dog Is Discontinued, Then Brothers Could Avoid

question 32

Essay

Brothers Corp. is considering dropping its talking dog product line due to continuing losses.
Revenue and cost data for the talking dog line for the past year follow:
$$\begin{array} { l r } \text { Sales (20,000 units) } & 300,000 \\\text { Variable costs } & 180,000 \\\text { Contribution margin } & 120,000 \\\text { Fixed costs } & 140,000\end{array}$$
If the talking dog is discontinued, then Brothers could avoid $110,000 per year in fixed costs.
Required:
a. What is the change in annual operating income from discontinuing the talking dog product line?
b. Assuming all other conditions stay the same, at what level of annual sales of the talking dog (in units) should Brothers be indifferent to discontinuing or continuing the product line?
c. Suppose that if the talking dog is dropped, the production and sale of other products would increase so as to generate a $15,000 increase in the contribution margin received from the other products. If all other conditions are the same, what is the change in annual operating income from dropping the talking dog?

Identify strategies for increasing physical activity in everyday life.

Know the recommended guidelines for muscle fitness training frequency.

Understand the correct procedures for care of exercise-related injuries.

Understand the relationship between exercise intensity, duration, and optimal performance.

---

Definitions:

Ethics

Moral principles that govern a person's behavior or the conducting of an activity, shaping judgments about what is right or wrong.

Supervision

The act of overseeing the work and performance of others, often used in professional contexts to ensure quality and provide guidance or mentoring.

Developmental Perspective

An approach that considers the influence of physical, cognitive, and social growth on behavior and thinking at various life stages.

Cultural Perspective

Viewing issues, behaviors, and treatments in the context of the individual's cultural background and beliefs, recognizing the impact of culture on mental health.