1d) Puppy Power Ltd produce 3 products as follows:

	A	B	C
Sale Revenue per unit	20	30	40
Variable costs per unit	10	10	15
Allocated Fixed costs per unit	15	15	5
Profit per unit	(5)	5	20

The assistant accountant has suggested that the product A line be closed.

Do you agree? Give reasons for your opinion.1d) Canine Ltd bought a machine costing 20,000 two years ago. A contract has been signed to pay insurance costs of 200 per year. Depreciation is calculated at 5,000 per year. Maintenance depends on the number of hours that the machine is used and is currently 5 per 100 hoursThe machine could be sold next week for 6000.

1d i) Complete the following table by ticking the appropriate box

Cost	Relevant	Irrelevant
Machine cost 20,000
Insurance costs 200 per year
Depreciation 5,000 per year
Sales price 6,000

1d ii) Explain your choice of cost for the machine cost 20,000 in 1di. 1diii) Explain your decision for the depreciation.