Question
A company sells two products that are manufactured in the same production department on two different machines. The contribution margin per unit of the two
A company sells two products that are manufactured in the same production department on two different machines. The contribution margin per unit of the two products is $120 and $80, respectively. When deciding if the second product should be discontinued, which one of the following pieces of information is needed to make the correct decision?
A. Alternative use of the second product's space.
B. Depreciation expense of the second product's machinery.
C. Production department manager's salary.
D. Commissions paid on the second product's sales.
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Management Accounting Information for Decision-Making and Strategy Execution
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
6th Edition
137024975, 978-0137024971
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