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# A bakery has the following three lines of products. The owner is considering dropping bagel, which...

## Question

###### A bakery has the following three lines of products. The owner is considering dropping bagel, which...

A bakery has the following three lines of products. The owner is considering dropping bagel, which would reduce the bakery's total fixed costs by \$400. All revenue and variable costs would also be eliminated. Sales Variable costs Contribution margin Fixed costs Operating profit (loss) Muffins \$ 2,000 \$ 500 \$ 1,500 \$ 1,200 \$ 300 Cookies \$ 2,600 \$ 700 \$ 1,900 \$ 1,300 \$ 600 Bagels Total \$ 2,800 \$ 7,400 \$ 1,500 \$ 2,700 \$ 1,300 \$ 4,700 \$ 1,400 \$ 3,900 \$ (100) \$ 800 What would be the total profit if the company dropped the bagel production?

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