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Please Answer 1. Acme's Manufacturing produces three products: A, B, and C. It has fixed costs of $18,000. Unit selling price S 100S 130 S
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1. Acme's Manufacturing produces three products: A, B, and C. It has fixed costs of $18,000. Unit selling price S 100S 130 S 210 Unit variable costs S 60 S 30 S 180 Labor-hours per unit a. What would the break-even point be (in units) if Acme were to sell only product A? b. What is the break-even point (in units) if Acme sells products A, B, and according to the following sales-mix? Sales mix 55% 15% 30% C. If Acme is limited to 195 labor-hours per week (its constraining factor), what product should it focus on making? (Show calculations to support your answer.) d. Why might it be unwise to stop selling the item that makes leastprofit? e. Product A uses a special piece of manufacturing equipment, the "widget maker," which products Band Cdo not need. If the depreciation for the widget maker is included in the unit variable cost of $60, why might it be a good idea to exclude the depreciation from your comparison? (Hint: think about sunk costs.)Step by Step Solution
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