Castleberry Products Manufactures Three Product Lines: A,B,and C Management Is Considering Dropping Product Line B
Castleberry Products manufactures three product lines: A,B,and C.The following information is available for each product line:
Management is considering dropping product line B.
Required:
A. What is one qualitative factor that Castleberry should consider before dropping product line ?
B. If it is determined that all of product line B's fixed costs are avoidable, what would be the effect on the company's overall net income if it were dropped?
C. If it is determined that none of product line B's fixed costs are avoidable, what would be the effect on the company's overall net income if it were dropped?
D. If it is determined that of product line B's fixed costs are avoidable, what would be the effect on the company's overall net income if it were dropped?
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