Sturgis Manufacturing produces ten product lines from three locations. You have been retained as a consultant to review the profitability of the product lines, divisions and company. For each product line, you are given the price and quantity sold per month for each product the unit variable cost for each product and the fixed cost for producing each product. The "Product Fixed Cost" must be born if the product is produce that month. Division Product Line Price Quantity Product Unit Var Cost Product Line Fixed Cost 1 1 11 20 5 20 1 2 13 10 3 20 1 3 4 5 2 50 2 4 14 10 4 10 2 5 4 10 3 30 2 6 4 10 2 140 2 7 8 20 4 50 3 8 12 7 2 35 3 9 7 10 5 10 3 10 13 5 3 15 In addition, you are told that each division has a "divisional overhead" of $100 that must be born if the division produces ANY products in a given month. Finally, there is a $75 "corporate overhead" that must be born each month, if the company stays in business.

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Analyzing Sturgis Manufacturings Profitability Heres a framework to analyze the profitability of Sturgis Manufacturing 1 Calculate Contribution Margin ... View the full answer