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Wedding Supply Is Trying to Decide Whether or Not to Continue

question 49

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Wedding Supply is trying to decide whether or not to continue distributing reception supplies. The following information is available for Wedding Supply's business segments.  ReceptionSunplies BridaL Dresses EloraL Decorations  Sales $160,000$110,000$210,000 Variable costs 84,00050,000120,000 Contribution margin 76,00060,00090,000 Direct fixed costs 50,00020,00025,000 Allocated common fixed costs 30,00025,00030,000 Net income ($4,000) $15,000$35,000\begin{array}{lrrr}&\text { ReceptionSunplies}&\text { BridaL Dresses}&\text { EloraL Decorations }\\\text { Sales } & \$ 160,000 & \$ 110,000 & \$ 210,000 \\\text { Variable costs } & 84,000 & 50,000 & 120,000 \\\hline \text { Contribution margin } & 76,000 & 60,000 & 90,000 \\\text { Direct fixed costs } & 50,000 & 20,000 & 25,000 \\\text { Allocated common fixed costs } & 30,000 & 25,000 & 30,000 \\\text { Net income }&(\$4,000) &\$15,000&\$35,000\end{array} If reception supplies are dropped, what change will occur to profit?

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Definitions:

Age Cohort

A group of people broadly in the same age range, sharing similar experiences, attitudes, and historical contexts.

Formative Experiences

Critical events or periods in an individual's life that profoundly influence their development, personality, or values.

Age Cohorts

Groups of people defined by their age, often used in studies to understand generational differences in behavior and attitudes.

Behavior Patterns

Regularly observed actions or reactions that are characteristic of an individual or group, often influenced by society's norms and values.

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