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Please i want answer this question like case study have introduction to explain the question answer and how answered this question and explain any part
Please i want answer this question like case study have introduction to explain the question answer and how answered this question and explain any part of question then after answered write conclusion about question
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A company is engaged in 3 distinct lines of production, their production cost per unit and selling price are as under: Particular A B Production (Units) 3000 2000 5000 SAR SAR SAR Material Cost 26 30 Wages 910 Variable Overhead Fixed Overhead 8 Total Cost 32 46 52 Selling Price 40 60 61 Profit 8 149 The management wants to discontinue one line and gives you the assurance that production in two other lines will rise by 50%. It intends to discontinue the line which production line as it is less profitable. You are required to calculate of profit from different production arrangement: [1.) If product 'A' is discontinued and the sale of product 'B' and 'C' are increased by 50% [2.) If product 'B' is discontinued and the sale of product 'A' and 'C' are increased by 50%. [3.) If product 'C' is discontinued and the sale of product 'A' and 'B' are increased by 50% 14. Do you agree to the scheme in principle? if so, do you think that the line which produces article 'A' should be discontinued ? [5.] Offer your comments and show necessary statements to support your decisionStep by Step Solution
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