Halfway Industries produces two products. Information about the products is as follows:
$\begin{array}{lrr}
&\text { Clocks}&\text { Headphone:}\
\text { Units produced and sold } & 8,000&20,000\
\text { Selling price per unit } & \$ 16 &\$14\
\text { Variable costs per unit } & 10&9
\end{array}$

The company's fixed costs totaled $140,000, of which $30,000 can be directly traced to Clocks and $90,000 can be directly traced to Headphones.
Required:
The effect on the firm's profits if the Headphone product is dropped would be:

Question

Halfway Industries produces two products. Information about the products is as follows:
 $\begin{array}{lrr}
&\text { Clocks}&\text { Headphone:}\
\text { Units produced and sold } &  8,000&20,000\
\text { Selling price per unit } & \$  16 &\$14\
\text { Variable costs per unit }  & 10&9
\end{array}$
 
The company's fixed costs totaled $140,000, of which $30,000 can be directly traced to Clocks and $90,000 can be directly traced to Headphones.
Required:
The effect on the firm's profits if the Headphone product is dropped would be:

Quizplus · Accepted Answer

The Answer of Halfway Industries produces two products. Information about the products is as follows:
 $\begin{array}{lrr}
&\text { Clocks}&\text { Headphone:}\
\text { Units produced and sold } &  8,000&20,000\
\text { Selling price per unit } & \$  16 &\$14\
\text { Variable costs per unit }  & 10&9
\end{array}$
 
The company's fixed costs totaled $140,000, of which $30,000 can be directly traced to Clocks and $90,000 can be directly traced to Headphones.
Required:
The effect on the firm's profits if the Headphone product is dropped would be:

Halfway Industries Produces Two Products The Company's Fixed Costs Totaled $140,000, of Which $30,000 Can