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Due to difficult times, Good Years Products operates well below capacity and loses. The general manager had the company income statement segmented, and obtained the
Due to difficult times, Good Years Products operates well below capacity and loses. The general manager had the company income statement segmented, and obtained the following figures:
Product 1 | Product 2 | Product 3 | |
Revenue | 2,000,000.00 | 3,000,000.00 | 4,000,000.00 |
Fixed Cost | 300,000.00 | 400,000.00 | 1,500,000.00 |
Variable Cost | 1,500,000.00 | 3,100,000.00 | 3,400,000.00 |
Treat the following items independently of each other. Assume a short-run horizon and no inter-product effects. (Solutions required)
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