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9. Product alternatives. Schmidt Company sells two products with the following characteristics: PRODUCT A PRODUCT B Quantity sold100,000 units 50,000 units Standard cost per unit:
9. Product alternatives. Schmidt Company sells two products with the following characteristics: PRODUCT A PRODUCT B Quantity sold100,000 units 50,000 units Standard cost per unit: $10 10 $20 $30 $20 40 $60 $54 Variable Sales price per unit. Required: (1) The profit per unit and in total for each product, assuming that the firm operates at normal (2) A decision as to whether the firm should continue its sales of both. products, assuming (3) A decision to either drop Product B or add Product C, assuming that facilities presently capacity and that the standard cost and the actual cost are the same. that the fixed cost (in total) will remain the same. committed to B alternatively could be assigned to C, that the two products are mutually exclusive, and that C has the following characteristics: Standard cost per unit: PR 20 $60 $50 Variable Sales price per uni... (4) The opportunity cost associated with Product B and with Product C
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