Orange Bliss manufactures two products, Frozen and Rocks, that sell for $80 and $40 respectively. The company produced 10,000 units last year and at that level of activity, the average cost per unit were: Frozen Rocks direct materials $20 $15 direct labor $18 $12 variable manu. $20 $12 overhead traceable/avoidable $15 $13 fixed variable selling & $ 5 $ 6 admin allocated/unavoidable $12 $2 fixed total cost per unit $ $ 13 Orange Bliss has had low volume in Rocks (2,000 units sold) for some time and is considering dropping that product line. What is the advantage (disadvantage) of dropping this product line? Round to nearest whole number with disadvantage expressed as a negative
Orange Bliss manufactures two products, Frozen and Rocks, that sell for $80 and $40 respectively. The company produced 10,000 units last year and at that level of activity, the average cost per unit were: Frozen Rocks direct materials $20 $15 direct labor $18 $12 variable manu. $20 $12 overhead traceable/avoidable $15 $13 fixed variable selling & $ 5 $ 6 admin allocated/unavoidable $12 $2 fixed total cost per unit $ $ 13 Orange Bliss has had low volume in Rocks (2,000 units sold) for some time and is considering dropping that product line. What is the advantage (disadvantage) of dropping this product line? Round to nearest whole number with disadvantage expressed as a negative
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter20: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 4CMA: Eagle Brand Inc. produces two products as follows: Eagle Brand has 1,000 lbs. of raw materials that...
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