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Brown Company makes three different types of pumps. The demand on its high-end model (Model A) has decreased, and Brown has had to reduce its
Brown Company makes three different types of pumps. The demand on its high-end model (Model A) has decreased, and Brown has had to reduce its sales price. Brown is now considering whether to discontinue this product and produce only the other products. Brown currently produces and sells 250 units of each type of pump. They don't anticipate that demand for the other two models will change based on their decision. Brown uses full-absorption costing; manufacturing overhead is allocated based on direct labor hours.
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