Dexter Co. mines three products. Gold ore sells for P1,000,000 per ton, variable costs are P600,000 per ton, and fixed mining costs are P6,000,000. The segment margin for 2021 was P1,200,000. The management of the company was considering dropping the mining of Gold ore. Only one-half of the fixed expenses are direct and would be eliminated if the segment was dropped. If Gold ore were dropped, net income for Dexter would?
Dexter Co. mines three products. Gold ore sells for P1,000,000 per ton, variable costs are P600,000 per ton, and fixed mining costs are P6,000,000. The segment margin for 2021 was P1,200,000. The management of the company was considering dropping the mining of Gold ore. Only one-half of the fixed expenses are direct and would be eliminated if the segment was dropped. If Gold ore were dropped, net income for Dexter would?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Dexter Co. mines three products. Gold ore sells for P1,000,000 per ton, variable costs are P600,000 per ton, and fixed mining costs are P6,000,000. The segment margin for 2021 was P1,200,000. The management of the company was considering dropping the mining of Gold ore. Only one-half of the fixed expenses are direct and would be eliminated if the segment was dropped. If Gold ore were dropped, net income for Dexter would?
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