Nana Kay Ltd is a multiproduct firm. The revenues of a single product, Germ-D, are GH200,000 when 10,000 units are sold. Variable costs are GH16 per unit. Direct fixed expenses of GH25,000 consists primarily of depreciation on 

equipment specialised to the product. By what amount will Nana Kay Ltd' cash flow change if the product is dropped? Would you advise Nana Kay Ltd to drop Germ-D

Answer rating: 100% (QA)

To determine the change in Nana Kay Ltds cash flow if the GermD product is dropped we need to calcul... View the full answer