Instructions The demand for solvent, one of numerous products manufactured by Logan Industries Inc., has dropped...

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Instructions The demand for solvent, one of numerous products manufactured by Logan Industries Inc., has dropped sharply because of recent competition from a similar product. The company's chemists are currently completing tests of various new formulas, and it is anticipated that the manufacture of a superior product can be started on November 1, one month in the future. No changes will be needed in the present production facilities to manufacture the new product because only the mixture of the various materials will be changed The controller has been asked by the president of the company for advice on whether to continue production during October or to suspend the manufacture of solvent until November 1 The following data have been assembled: Logan Industries Inc Income Statement-Solvent For the Month Ended September 30 Sales (10,000 units) $800,000.00 Cost of goods sold (770,000.00) Gross profit $30,000.00 Selling and administrative expenses (100,000.00) Operating loss $70,000.00 Instructions The demand for solvent, one of numerous products manufactured by Logan Industries Inc., has dropped sharply because of recent competition from a similar product. The company's chemists are currently completing tests of various new formulas, and it is anticipated that the manufacture of a superior product can be started on November 1, one month in the future. No changes will be needed in the present production facilities to manufacture the new product because only the mixture of the various materials will be changed The controller has been asked by the president of the company for advice on whether to continue production during October or to suspend the manufacture of solvent until November 1 The following data have been assembled: Logan Industries Inc Income Statement-Solvent For the Month Ended September 30 Sales (10,000 units) $800,000.00 Cost of goods sold (770,000.00) Gross profit $30,000.00 Selling and administrative expenses (100,000.00) Operating loss $70,000.00