PlayPal Ltd. is considering dropping its DoomDrum toy due to the continuing losses. Revenue and cost data on the toy for the past year follow: Sales of 15,000 units £150,000 Variable expenses £120,000 Contribution margin £30,000 Fixed expenses £40,000 Net operating loss (£10,000) If the toy were discontinued, PlayPal Ltd. could avoid £8,000 per year […]
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