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Marsellus Electronics manufactures two tablet devices, the Cub, and the Eagle. Cub Variable cost per unit $150 Selling price $175 Eagle Variable cost per unit
Marsellus Electronics manufactures two tablet devices, the Cub, and the Eagle. Cub Variable cost per unit $150 Selling price $175 Eagle Variable cost per unit $450 Selling price $575 Currently Marsellus sells 1,000 Cub and 400 Eagle tablets. They allocate fixed costs based on the square footage of plant space. The plant is 20,000 square feet and each line occupies 10,000 square feet of the plant. Fixed costs are $50,000. Given this information which of the following is correct? d) The Eagle line should be dropped a) The Cub line currenty breaks even based on allocated costs c) The Eagle line is losing money based on allocated costs b) The Cub line is losing money based on alocated costs
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