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Please help me with these questions (Note: This type of decision is similar to dropping a product line) Nicholas Company manufactures a fast-bonding glue, normally
Please help me with these questions (Note: This type of decision is similar to dropping a product line) Nicholas Company manufactures a fast-bonding glue, normally producing and selling 62.000 litres of the glue each month. This glue, which is known as MJ-7 is used in the wood Industry to manufacture plywood. The selling price of MJ-7 $40 per litre, variable costs are $24 per tre fixed manufacturing overhead costs in the plant total $356.500 per month, and the foxed selling costs total $477400 per month Surikes in the mills that purchase the bulk of the M a have caused Nicholas Company's cales to temporary drop to only 15,500 litres per month. Nicholas Company's management estimates that the strikes will last for two months after which sales of MJ-7 should return to normal Due to the current low level of sales, Nicholas Company's management is thinking about closing down the plant during the strike If Nicholas Company does close down the plant food manufacturing overhead costs can be reduced by $93 000 por month and fixed selling costs can be reduced by 10%. Start-up costs at the end of the shutdown period would total $9.480. Since Nicholas Company uses loan production methods, no inventors are on hand Required 10. Assuming that the strikes continue for two months. comoute the increase or decrease in income from closing the plant Nel come 1.b. Would you recommend that Nicholas Company to its own plant Oros No 2. At wat vel of sales for the more UN Comony borontban do the sand Weeping it on HT styf teak only that contortion of outbre d Trude only those fixed costs that are r e vodovor t h Dario
Please help me with these questions
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