answer quickly ABC Company Produces and sells three Products - A, B, C.Product A Product BProduct CTotalSales$100,000 $200,000$300,000 $600,000Less Cost of goods sold80,000150,000200,000430,000Gross margin20,00050,000100,000170,000Less Operatingexpenses30.00070.00070,000170.000Net operating income$(10.000) $(20.000)$30.000$0For each segment, 40% of its cost of goods sold and operating expenses are variable expenses anathe remaining balances are fixed expenses. Total fixed expenses (operating and manufacturing)were allocated to each segment as follows:Fixed Expenses Allocated toEach SegmenttaoProduct A$0Product B$50,000Product C$70,000How much is the total cost that the company can save, if Product A was dropped?Select one:O a. $110,000O b. $100,000OC. $90,000

Introduction: Variable cost: The cost which is not fixed in nature. It varies according to the…

Answered: ABC Company Produces and sells three…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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