RS Company's Western Territory's Forecasted Income Statement for the Upcoming

question 35

True/False

RS Company's western territory's forecasted income statement for the upcoming year is as follows:
$$\begin{array} { | l | r | } \hline \text { Sales } & \$ 750000 \\\hline \text { Variable expenses } & \$ 20000 \\\hline \text { Contribution margin } & \$ 330000 \\\hline \text { Fixed expenses } & \$ 396000 \\\hline \text { rofit } & ( \$ 66000 ) \\\hline\end{array}$$
RS Company's management is considering dropping the western territory.This move would be financially advantageous only if the company could eliminate $330 000 of fixed costs or more.

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