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

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:
 $$\begin{array} { | l | r | r | } 
\hline & \text { Clocks } & \text { Headphones } \
\hline \text { Units produced and sold } & 8,000 & 20,000 \
\hline \text { Selling price per unit } & \$ 16 & \$ 14 \
\hline \text { Variable costs per unit } & 10 & 9 \
\hline
\end{array}$$

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:
 $$\begin{array} { | l | r | r | } 
\hline & \text { Clocks } & \text { Headphones } \
\hline \text { Units produced and sold } & 8,000 & 20,000 \
\hline \text { Selling price per unit } & \$ 16 & \$ 14 \
\hline \text { Variable costs per unit } & 10 & 9 \
\hline
\end{array}$$

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 Be