Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
DATA INPUT
Paints & Supplies
Carpeting Wallpaper
Sales 190,000$ 230,000$ 70,000$
Variable Costs 114,000$ 161,000$ 56,000$
Fixed Costs 28,000$ 37,500$ 22,500$
Total Costs 142,000$ 198,500$ 78,500$
Operating Income (loss) 48,000$ 31,500$ (8,500)$
Remodeling
Remodeling Costs 6,200$
Increased Sales 60,000$
Increased Contribution Margin 5%
Wallpaper fixed costs cut 40%
Loss of Paint Sales 20%
New Adveritising 12,500$
SOLUTION
Contemporary Trends will be worse off by $6400 if it discontinues wallpaper sales
Paints & Supplies
Carpeting Wallpaper
Sales 190,000$ 230,000$ 70,000$
If wallpaper is closed, then:
Loss of wall paper contribution margin
(14,000)$
