Wiseman Inc. Manufacturing produces Health Drinks in a Manufacturing facility. The products are: Health Shake Pre -
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Question:
Wiseman Inc. Manufacturing produces Health Drinks in a Manufacturing facility. The products are:
Health Shake
PreWork out
Post Work out
Wiseman introduced a th Product: Health bar, made from most healthy food inputs, Broccoli, Beetroot and Locusts.
Wiseman produces all these health products in the same manufacturing facility and cannot change fixed costs for years.
ProductsAccount Codes Health Shake PreWork out PostWork out Health Bar Wiseman Total
Sales
Cost of Goods sold
Other Relevant Costs
Contribution Margin
Allocated fixed Costs
Operating Income
REQUIRED:
Calculate:
the Contribution Margin for PreWork
the Operating Income for PostWork out
Write out a definition for Contribution Margin.
Referencing the above definition, which of the above product lines would you cut stop production on to increase profitability of Wiseman Inc. Manufacturing?
Explain why you would continue production with other products.
Choose the companycompanies that you would stop production on and explain why?
Related Book For
Global Marketing management
ISBN: 978-0470505748
5th edition
Authors: Masaaki Kotabe, Kristiaan Helsen
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