Question

Superior Instruments produces two models of instruments. Information for each model is as follows:


The demand for either product is sufficient to keep the plant operating at full capacity (15,000 machine-hours per month). Assume that only one product is to be produced in the future.

Instructions
a. Prepare a schedule showing the contribution margin per machine-hour for each product.
b. Explain your recommendation as to which of the two products should bediscontinued.


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  • CreatedApril 17, 2014
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