Question 11 Appel Inc. has two product lines: phones and laptops. They are considering dropping the phone segment to improve their net operating income. Data for each per unit is as follows: Laptops Phones Revenue Variable Costs Traceable Fixed Costs Allocated Fixed Costs $530 $245 $300 $110 Total Per Unit $(125) Assume no allocated fixed costs are avoidable if the phone segment is dropped, but 100% of traceable fixed costs can be avoided. $1099 $430 $209 $130 $330 If Appel Inc. sells 1,401 units of phones and 689 units of laptops, how much will their net operating income increase/decrease if the phone segment is dropped? Round your answer to the nearest dollar.

Question 11 Appel Inc. has two product lines: phones and laptops. They are considering dropping the phone segment to improve their net operating income. Data for each per unit is as follows: Laptops Phones Revenue Variable Costs Traceable Fixed Costs Allocated Fixed Costs $530 $245 $300 $110 Total Per Unit $(125) Assume no allocated fixed costs are avoidable if the phone segment is dropped, but 100% of traceable fixed costs can be avoided. $1099 $430 $209 $130 $330 If Appel Inc. sells 1,401 units of phones and 689 units of laptops, how much will their net operating income increase/decrease if the phone segment is dropped? Round your answer to the nearest dollar.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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