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Trio Sports Manufacturer produces equipment for three sports: baseball, basketball, and golf. The accountants prepared a segmented contribution margin statement for the past year based on the three types of products manufactured as shown below. The CEO is concerned with the basketball equipment segment as it has been showing a loss for the past few years.
Trio Sports Manufacturer
Segmented Contribution Margin Statement
For the Year Ended December 31, 2019
Baseball Basketball Golf Total
Revenue $716,000 $585,000 $453,000 $1,754,000
Variable Costs $223,000 $281,000 $219,000 $723,000
Contribution Margin $493,000 $304,000 $234,000 $1,031,000
Fixed Costs $417,000 $356,000 $144,000 $917,000
Income from Operations $76,000 $-52,000 $90,000 $114,000
Recommend whether Trio should keep or drop the basketball equipment product line based on the following independent scenarios:
Do not enter dollar signs or commas in the input boxes.
Use the negative sign for a decrease in income.
Indicate keep or drop using the drop-down lists.
Trio Sports Manufacturer produces equipment for three sports: baseball, basketball, and golf. The accountants prepared a segmented contribution margin statement for the past year based on the three types of products manufactured as shown below. The CEO is concerned with the basketball equipment segment as it has been showing a loss for the past few years.
Trio Sports Manufacturer Segmented Contribution Margin Statement For the Year Ended December 31, 2019 Baseball Basketball Golf Total Revenue $716,000 $585,000 $453,000 $1,754,000 Variable Costs $223,000 $281,000 $219,000 $723,000 Contribution Margin $493,000 $304,000 $234,000 $1,031,000 Fixed Costs $417,000 $356,000 $144,000 $917,000 Income from Operations $76,000 $-52,000 $90,000 $114,000
Recommend whether Trio should keep or drop the basketball equipment product line based on the following independent scenarios: Do not enter dollar signs or commas in the input boxes. Use the negative sign for a decrease in income. Indicate keep or drop using the drop-down lists.
