Given Data P12-24; Class: McGraw-HIIHitwl Problem 12.24 Would Increase in Selling Expense be justified? YES Contribution Margin Total lost of plant is closed Fixed Costs that can be avoided if plant is closed Fxed Seling Costs Net advantage (disadvantage) of closing the plant Would the profits incline or decline and by how much? 4 Blemishes Polevant Cost per unit Explain why: 5 Outside Manufacturer Variable production costs Fixed manulacturing ovemead cost Variable selling expense Total avoidabie cost $0.00 To be acceptabie, the outside manufacturer s quotation must be less than per unit Given Data P12-24; Class: McGraw-HIIHitwl Problem 12.24 Would Increase in Selling Expense be justified? YES Contribution Margin Total lost of plant is closed Fixed Costs that can be avoided if plant is closed Fxed Seling Costs Net advantage (disadvantage) of closing the plant Would the profits incline or decline and by how much? 4 Blemishes Polevant Cost per unit Explain why: 5 Outside Manufacturer Variable production costs Fixed manulacturing ovemead cost Variable selling expense Total avoidabie cost $0.00 To be acceptabie, the outside manufacturer s quotation must be less than per unit