Information for Russett Industries sales and production for the year follows: Product A Product N Product...
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Information for Russett Industries" sales and production for the year follows: Product A Product N Product G Units produced and sold Selling price per unit Variable expenses per unit S16 $20 S25 S10 $15 $23 The company's fixed costs totalled $75,000, of which $30,000 can be avoided if Product A is dropped, 525,000 can be avoided if Product N is dropped, and $8,000 can be avoided if Product G is dropped. Required: Write an email to the Marketing Manager with your recommendation as to whether any of the products should be dropped. Provide supporting calculations. Relevant costs for decision-making: Keep or drop (11 marks) Information for Russett Industries' sales and production for the year follows: Product A Product N Product G Total Units produced and sold Selling price per unit Variable expenses per unit 10,022 8,022 2,978 $16 $20 $25 $10 $15 $23 The company's fixed costs totalled $75,000, of which $30,000 can be avoided if Product A is dropped, S25,000 can be avoided if Product N is dropped, and $8,000 can be avoided if Product G is dropped. Total fixed costs $75,000 Avoidable fixed costs $30,000 $25,000 $8,000 Information for Russett Industries" sales and production for the year follows: Product A Product N Product G Units produced and sold Selling price per unit Variable expenses per unit S16 $20 S25 S10 $15 $23 The company's fixed costs totalled $75,000, of which $30,000 can be avoided if Product A is dropped, 525,000 can be avoided if Product N is dropped, and $8,000 can be avoided if Product G is dropped. Required: Write an email to the Marketing Manager with your recommendation as to whether any of the products should be dropped. Provide supporting calculations. Relevant costs for decision-making: Keep or drop (11 marks) Information for Russett Industries' sales and production for the year follows: Product A Product N Product G Total Units produced and sold Selling price per unit Variable expenses per unit 10,022 8,022 2,978 $16 $20 $25 $10 $15 $23 The company's fixed costs totalled $75,000, of which $30,000 can be avoided if Product A is dropped, S25,000 can be avoided if Product N is dropped, and $8,000 can be avoided if Product G is dropped. Total fixed costs $75,000 Avoidable fixed costs $30,000 $25,000 $8,000
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Cost Accounting A Managerial Emphasis
ISBN: 978-0136126638
13th Edition
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
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