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need answers it's very urgent 5 minutes VS Translate m Cape Breton Univer... Nova Scotia Opport... Red Harsh Patel Sebastian Manufacturing Limited manufactures a number
need answers it's very urgent 5 minutes
VS Translate m Cape Breton Univer... Nova Scotia Opport... Red Harsh Patel Sebastian Manufacturing Limited manufactures a number of products including a product called Triton. Triton has been losing money for the last few years and the manager of Sebastian Manufacturing is thinking of discontinuing its production. of stion The results for the last quarter for Product Triton are as follows: Sales $425,000 Variable costs Variable manufacturing costs $105,000 Sales Commissions 42,500 Shipping 56,000 Total variable costs 203,500 Contribution margin 221,500 Fixed costs 55,500 Salary of production line manager General factory overhead 89,000 26_092630.pdf Show all 12,000 Depreciation on equipment Direct advertising General administrative expenses 60,000 28,000 Insurance on inventories 6,500 Total fixed costs 251,000 Net loss $(29,500) The equipment has no resale value and no other use. Discontinuing production of Product Triton will not affect the sales of other products and would have no affect on factory overhead or general administrative expenses. Required: Would you recommend they discontinue production of Product Triton? Why or why notStep by Step Solution
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