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Measuring Performance of profit centers REQUIRED: Assess the performance of each product line Measuring performance of profit centers Ajax company produces and sell two products,

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Measuring Performance of profit centers

REQUIRED: Assess the performance of each product line

Measuring performance of profit centers Ajax company produces and sell two products, ABC and CBA. Revenue and cost information relating to the products follows: ABC Selling price per unit 120 150 Variable expense per unit 48 105 Traceable fixed expense per year 900,000 420,000 Common fixed expense in the company total to P660,000 annually and is allocated to each product based on the number of units sold. Last year, the company produced and sold 25,000 units of ABC and 30,000 units of CBA

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