The Print Manufacturing Company manufactures Size 1, Size 2, and Size 3 printer ribbons to support the printers it manufactures. The managerial accountant reported the following information:
The managerial accountant at Print Manufacturing noted that the Size 3 printer ribbon reports a loss and the managerial accountant needs to determine if the company should drop the Size 3 printer ribbon. What is the increase or decrease in operating income if the operations manager drops the Size 3 printer ribbon and does not replace it? If the managerial accountant recommends that the organization drop the Size 3 printer ribbon and rent out the space the company uses to store the product at $11,000 per year, is there an increase or a decrease in operating income?

Question

The Print Manufacturing Company manufactures Size 1, Size 2, and Size 3 printer ribbons to support the printers it manufactures. The managerial accountant reported the following information:  
The managerial accountant at Print Manufacturing noted that the Size 3 printer ribbon reports a loss and the managerial accountant needs to determine if the company should drop the Size 3 printer ribbon. What is the increase or decrease in operating income if the operations manager drops the Size 3 printer ribbon and does not replace it? If the managerial accountant recommends that the organization drop the Size 3 printer ribbon and rent out the space the company uses to store the product at $11,000 per year, is there an increase or a decrease in operating income?

Quizplus · Accepted Answer

The Answer of The Print Manufacturing Company manufactures Size 1, Size 2, and Size 3 printer ribbons to support the printers it manufactures. The managerial accountant reported the following information:  
The managerial accountant at Print Manufacturing noted that the Size 3 printer ribbon reports a loss and the managerial accountant needs to determine if the company should drop the Size 3 printer ribbon. What is the increase or decrease in operating income if the operations manager drops the Size 3 printer ribbon and does not replace it? If the managerial accountant recommends that the organization drop the Size 3 printer ribbon and rent out the space the company uses to store the product at $11,000 per year, is there an increase or a decrease in operating income?

The Print Manufacturing Company Manufactures Size 1, Size 2, and Size