Exercise 1 (1 mark) 5 Cane Corp make and sells the unique product Wire The following information has been collected on each product 7 B 9 Capacity in units Wizo 2.500 TO Trex 4000 Selling Price 75.00 45.00 Costs per unit at capacity Variable Cost Traceable Fixed Costs Allocated Fixed Costs 25.00 10.00 18.00 10.00 6.00 18.00 12 13 14 15 16 17 18 19 20 21 22 23 Traceable fixed costs would be eliminated if a product was discontinued Allocated fixed costs would NOT be eliminated if a product was discontinued What is the operating profit/ loss for each product assuming the given sales quantities? Wizo Trez 24 Sales Units 2,000 2.500 25 26 27 28 Revenue Variable Costs Contribution Margin Instructions MC Exercise 1 Answer Sheet New.../ What is the operating profit / loss for each product assuming the given sales quantities? Wizo Sales Units Trez 2,000 2,500 21 22 23 24 25 26 27 28 29 30 31 32 33 Revenue Variable Costs Contribution Margin Fixed Costs Operating Profit/Loss Should the Trez product line be discontinued? 34 If the Trez product line was discontinued what would be the impact to the company overall? Fixed cost savings 35 36 37 38 39 40 41 Net impact 42 43 Instructions MC Exercise 1 Answer Sheet New