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McNulty, Inc. produces desks and chairs A new CFO has just been hired and announces a new policy that if a product cannot earn a

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McNulty, Inc. produces desks and chairs A new CFO has just been hired and announces a new policy that if a product cannot earn a mangin of at least 20 percent, it will be dropped. The margin is computed as product gross profit divided by reported product cost Manufachuring overhead for year 1 totaled $855,000 Overhead is alocated to products based on direct labor cost Data for year 1 show the following $1,062,600 $2.562,500 50,000 Direct materials

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