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Dropping a Product Line [LO 1, 2, 4],,Pantheon Gaming, a computer enhancement company, has three product lines: audio enhancers, video enhancers, and connection-speed accelerators. Common costs are allocated based on relative sales. A product line income statement follows:,,, ,Pantheon Gaming ,Income Statement ,For the Year Ended December 31, 2011, , Audio Video Accelerators Total ,Sales $1,045,000 $2,255,000 $2,200,000 $5,500,000 ,Less cost of goods sold 575,000, 1,240,000, 1,870,000, 3,685,000, ,Gross margin 470,000 1,015,000 330,000 1,815,000 ,Less other variable costs 55,600, 72,900, 20,900, 149,400, ,Contribution margin 414,400 942,100 309,100 1,665,600 ,Less direct salaries 155,100 176,600 65,700 397,400 ,Less common fixed costs: , Rent 11,970 25,830 25,200 63,000 , Utilities 4,370 9,430 9,200 23,000 , Depreciation 5,890 12,710 12,400 31,000 , Other administrative costs 79,230 170,970, 166,800, 417,000, ,Net income $157,840, $546,560, $29,800, $734,200, ,,Since the profit for accelerator devices is relatively low, the company is considering dropping this product line.,,Determine the impact on profit of dropping accelerator products.,,$ Better OffWorse off,,Please see Attached Doc. for more info

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