Microhard produces tablets, laptops and televisions. Microhard typically sells 1,000 tablets a year. The tablet information is as follows: Selling price per unit $70 Direct material cost per unit $30 Direct labor cost per unit $10 Total unavoidable allocated overhead $47,000 How much would Operating Income decrease if Microhard were to eliminate the tablets? DO NOT INCLUDE PARENTHESES OR NEGATIVE SIGNS IN YOUR ANSWER.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 13MC: Mallorys Video Supply has changed its focus tremendously and as a result has dropped the selling...
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  1. Microhard produces tablets, laptops and televisions. Microhard typically sells 1,000 tablets a year. The tablet information is as follows:

    Selling price per unit $70
    Direct material cost per unit $30
    Direct labor cost per unit $10
    Total unavoidable allocated overhead $47,000

    How much would Operating Income decrease if Microhard were to eliminate the tablets?

    DO NOT INCLUDE PARENTHESES OR NEGATIVE SIGNS IN YOUR ANSWER.

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