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:
$$\begin{array} { | l | l | } \hline \text { Sales } & \$ 750000 \\\hline \text { Variable expenses } & \$ 00000 \\\hline \text { Contribution margin } & \$ 250000 \\\hline \text { Fixed expenses } & \underline { 280000 } \\\hline \text { Operating loss } & ( \$ 30000 ) \\\hline\end{array}$$
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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Definitions:

Brand Communities

Groups of consumers who are bonded by their loyalty to a brand and engage in activities and social interactions around it.

Existing Practices

The current methods, processes, or operations adopted by businesses, institutions, or individuals as standard or conventional procedures.

Brand Strengthen

Involves increasing a brand’s equity and market position through strategies aimed at enhancing its perception and relationship with consumers.

Communal Branding

A branding strategy that emphasizes community involvement and identity in promoting a brand.