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bailey company manufactures and sells a number of products tncluding...

Question: bailey company manufactures and sells a number of products tncluding...

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Bailey Company manufactures and sells a number of products, tncluding Product R. Results from Last year from the sale of Prduct R are given below: Sales revenue...m. Variable production costs Sates commissions. Satary of product managernaanin Advertising expense Attocated general overhead Net operating Loss R750,000 450,000 110,000 80,000 55,000 Baitey Company is considering eliminat ing the production and sale of Product R. The company has determined that tf Product R is di scontinued, the contribution margin of its other products will increase by 340,000. Based on a cost analysts, the management of Bailey Company has determined that if Product R is discontinued the companys net income wilt decrease by $25,000 Calculate the amount of allocated general overhead cost for Product R incurred Last year

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