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following information in answering questions 6 and 7

Accounting Dec 04, 2020

following information in answering questions 6 and 7. Buy Best is an electronic store having three operating departments. An income statement for the most recent month of operations appears below. Computers TVs Radios Total Sales $55,000 $44,000 Variable Costs $11,000 $110,000 33,000 17,600 5,500 Contribution Margin 56,100 22,000 26,400 5,500 53,900 Fixed Costs Direct, avoidable (5,000) (4,000) (4,000) (13,000) Common, allocated based on sales dollars (10,000) (8,000) (2,000) (20,000) Profit (Loss) $ 7,000 $14,400 ($ 500) $ 20,900 6. If Buy Best were to drop the toy line and make no other changes to its operations, income for the month would be a. $ 20,400 b. $ 18,400 C. $ 19,400 d. $ 21,400

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