edf40wrjww2CF_PaperMaster:Desc
Q1. Based on the 2004 statement of profit and loss data, do you agree with Water’s decision to keep product 103?
Yes, we agree with Water’s decision.We explain it through Incremental Analysis (differential Income Approach)
Continue Drop Difference
Sales 26670 0 -26670
Less-Variable Expense
Compensation Insurance 458 0 458
Direct Labour 6879 0 6879
Materials 4851 0 4851
Supplies 350 0 350
Repairs 104 0 104
Power 302 0 302
Total Variable Expense 12944 12944
Contribution Margin 13726 -13726
Less-Fixed Expenses
Rent 1882 1882 0
Property Taxes 401 401 0
Property Insurance 534 534 0&n ...