18 9 10 QUESTION ONE (1) Yinzor Limited is a manufacturing company in Sandema. The company is engaged in three (3) distinct lines of production. Their production costs per unit and selling price are as follows: Shoes Bags Belts production (units) 3,000 2,000 5,000 GH GH GH Material cost 26 30 wages 7 Variable overheads 2 3 22 Fixed overheads 5 39 32 46 52 Selling price 40 60 61 profit 14 Management wants to discontinue one line and is however certain production in the other two lines will increase by 50%. It intends to discontinue the line which produces shoes as it is less profitable. a. Do you agree to the scheme in principle? If so, do you think that the line which produces shoes should be discontinued? b. comment on your decision 8