The table Top Model corp. produces three products, Tic, Tac, Toc. The owner desires to reduce...
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The table Top Model corp. produces three products, Tic, Tac, Toc. The owner desires to reduce production load to only one product lien due to the prolonged absence of the production manager. Depreciation expense amounts to P600,000 annually. Other fixed operating expenses amount to P660,000 per year. Which product must be retained and what is the opportunity cost of selecting such product line. SALES VARIABLE COSTS TIC TAC 6,600,000.00 5,300,000.00 3,900,000.00 1,700,000.00 TOC 10,800,000.00 8,900,000.00 The table Top Model corp. produces three products, Tic, Tac, Toc. The owner desires to reduce production load to only one product lien due to the prolonged absence of the production manager. Depreciation expense amounts to P600,000 annually. Other fixed operating expenses amount to P660,000 per year. Which product must be retained and what is the opportunity cost of selecting such product line. SALES VARIABLE COSTS TIC TAC 6,600,000.00 5,300,000.00 3,900,000.00 1,700,000.00 TOC 10,800,000.00 8,900,000.00
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The contribution margin for each product can be calculated as follows Tic Contribution Marg... View the full answer
Related Book For
Management Accounting
ISBN: 9780730369387
4th Edition
Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey
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