Totally Technology manufactures Cameras and Video Recorders. The company's product line income statement follows:

Management is considering discontinuing the Video Recorder product line. Accountants for the company estimate that discontinuing the Video Recorder line will decrease fixed cost of goods sold by $10,000 and fixed marketing and administrative expenses by $4,000.
Prepare an analysis supporting your opinion about whether or not the Video Recorder product line should be discontinued.

Question

Totally Technology manufactures Cameras and Video Recorders. The company's product line income statement follows:
   
Management is considering discontinuing the Video Recorder product line. Accountants for the company estimate that discontinuing the Video Recorder line will decrease fixed cost of goods sold by $10,000 and fixed marketing and administrative expenses by $4,000.
Prepare an analysis supporting your opinion about whether or not the Video Recorder product line should be discontinued.

Quizplus · Accepted Answer

The Answer of Totally Technology manufactures Cameras and Video Recorders. The company's product line income statement follows:
   
Management is considering discontinuing the Video Recorder product line. Accountants for the company estimate that discontinuing the Video Recorder line will decrease fixed cost of goods sold by $10,000 and fixed marketing and administrative expenses by $4,000.
Prepare an analysis supporting your opinion about whether or not the Video Recorder product line should be discontinued.

Totally Technology Manufactures Cameras and Video Recorders