Hayworth Corporation has Just segmented last year's income statement into its ten product lines. The chief executive officer (CEO) is curlous as towhat effect dropping one of the product lines at the beginning of last year would have had on overall company profit. What is the best number for theCEO to look at to determine the effect of this elimination on the net operating income of the company as a whole?Multiple Choicethe product line's sales dollarsthe product line's contribution marginthe product line's segment marginthe product line's segment mergin minus an allocated portion of common fixed expenses

Introduction: Contribution margin: Formula: Contribution margin = Selling price per unit -…

Answered: Hayworth Corporation has Just segmented…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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Assume a company's Income Statement for Year 12 is as follows: Year 12 (in 000s) Income Statement Data Net Revenues from Footwear Sales $ 580,000 370,000 40,000 75,000 15,000 90,000 Cost of Pairs Sold Warehouse Expenses Marketing Expenses Administrative Expenses Operating Profit (Loss) Interest Income (Expense) Pre-tax Profit (Loss) Income Taxes Net Profit (Loss) (15,000) 75,000 22,500 $ 52,500 Based on the above income statement data and assuming the company has 20 million shares of common stock outstanding , the company's operating profit margin and EPS were Copyright O by Glo-Bus Software, Inc. Capying, distributing, ar 3rd party website posting isexpressly prohibited and constitutes copyright vialation. 15.52% and $4.50. O 9.05% and $3.75. 13.79% and $1.75. O 12.93% and $3.75. O 15.52% and $2.63.
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