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Tyler Company Has Provided You with the Following Budgeted Income

question 21

True/False

Tyler Company has provided you with the following budgeted income statement for one of their products:
 Sales $750000 Variable expenses $00000 Contribution margin $250000 Fixed expenses 280000 Operating loss ($30000)\begin{array} { | l | l | } \hline \text { Sales } & \$ 750000 \\\hline \text { Variable expenses } & \$ 00000 \\\hline \text { Contribution margin } & \$ 250000 \\\hline \text { Fixed expenses } & \underline { 280000 } \\\hline \text { Operating loss } & ( \$ 30000 ) \\\hline\end{array}
Tyler Company believes that 80% of the fixed costs would be avoidable if the product line was dropped.Based on the impact of company's operating profit,Tyler should not drop the product line.


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