Peppers Automotive has further analyzed the exhaust division into three products, exhaust pipes, intake valves, and intake
Question:
What is the change in profit in both the short run and long run by dropping intake valves from their productline?
Transcribed Image Text:
Exhaust Pipes $500,000 50,000 50,000 50,000 400,000 100,000 $300,000 Intake Valves Intake Pipes S200,000 100,000 100,000 $300,000 150,000 150,000 50,000 100,000 150,000 $ (50,000) Net revenues Variable costs Contribution margin Controllable margin Contribution by profit center Controllable fixed costs 100,000 50,000 S 50,000 Noncontrollable fixed costs
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In the short run Peppers will lose 100000 in profits show...View the full answer
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Related Book For
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
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