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QUESTION 1 [10 Marks] Techno (Pty) Ltd manufactures cellphones, tablets and laptops. The information below is available regarding these three products: Cellphones: Tablets: R Laptops:
QUESTION 1 [10 Marks] Techno (Pty) Ltd manufactures cellphones, tablets and laptops. The information below is available regarding these three products: Cellphones: Tablets: R Laptops: R Total: R R Sales 135 000 225 000 90 000 450 000 Variable costs 40 500 90 000 49 500 180 000 Contribution 94 500 135 000 40 500 270 000 Fixed costs 132 000 Salary of 52 500 production manager Advertising and 45 000 marketing Depreciation 34 500 Net profit 138 000 Management has indicated their concern regarding the laptops. If they drop this product, advertising and marketing cost will decrease by R9 000. Required: Advise management on whether they should drop the laptop product line. Motivate your
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