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Eliminating Operations Capital Toys’ Management Is Considering Eliminating

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A
B
C
Total
Sales revenue
$2,200
$1,400
$1,800
$5,400
Variable expenses
1,650
600
1,080
3,330
Contribution margin
$ 550
$ 800
$ 720
$2,070
Advertisinga expense
$ 500
$ 475
$ 520
$1,495
Depreciation expense
15
10
20
45
Corporate expenses
90
80
105
275
Total fixed expenses
$ 605
$ 565
$ 645
$1,815
Operating income
$ (55)
$ 235
$ 75
$ 255
aSpecific to each product.
Specific to each product; no other use available, no resale value.
Allocated based on number of employees.Managerial Accounting