CORRECT ANSWER C. THE PRODUCTION AND SALE OF THE NEW DOLLS WOUL...
256.
Correct answer c. The production and sale of the new dolls would decrease the company’s
profit by $39,200 as shown below.
Contribution
$400,000
[10,000 x ($100 - $60)]
Fixed costs
456,000
Operating income
-56,000
Tax savings @30%
16,800
Net loss
-$39,000