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GreatSea Ltd has two products. Information about these products is as follows: Abu Bakar Units produced and sold 150 300 Selling price per unit $400
GreatSea Ltd has two products. Information about these products is as follows:
| Abu | Bakar |
Units produced and sold | 150 | 300 |
Selling price per unit | $400 | $200 |
Variable expenses per unit | $260 | $70 |
The company's fixed costs totalled $90,000, of which $40,000 can be avoided if Abu is dropped and $10,000 can be avoided if Bakar is dropped.
The companys total profits, if Abu is dropped, would be:
$ 2,000
$12,000
($11,000)
($28,000)
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