The Management of Bercegeay Corporation Is Considering Dropping Product Y25C

question 16

Essay

The management of Bercegeay Corporation is considering dropping product Y25C.Data from the company's accounting system appear below: All fixed expenses of the company are fully allocated to products in the company's accounting system.Further investigation has revealed that $117, 000 of the fixed manufacturing expenses and $78, 000 of the fixed selling and administrative expenses are avoidable if product Y25C is discontinued.
Required:
a.What is the net operating income earned by product Y25C according to the company's accounting system? Show your work!
b.What would be the effect on the company's overall net operating income of dropping product Y25C? Should the product be dropped? Show your work!

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Definitions:

Alternative Family

Non-traditional family structures that differ from the conventional nuclear family.

Feminist Theories

A range of theoretical and philosophical perspectives that aim to understand the nature of gender inequality and propose strategies for gender equity.

Social Institution

Structures in society that govern the behavior of individuals and groups, such as families, education systems, and governments.