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the decision has 2 options as shown for both standard and premium and reason has the same options for both standard and premium You have

image text in transcribedimage text in transcribedimage text in transcribed the decision has 2 options as shown for both standard and premium and reason has the same options for both standard and premium

You have been approached by a new company who wish to launch two new products. Th decide whether to sell both or just one of the products Use the information below Standard Costs are as follows f Premium 85.00 16.50 f Standard 74.00 11.00 f 37.31 f 26.65 f Selling Price Raw Materials Direct Labour Variable Overheads f 47.97 f 21.32 Fixed Overheads 5% of direct labour 12% of direct labour What should the company do? Standard Premium Decision Choose... Choose... Reason Choose... Choose... . Premium Choose... Standard Decision Choose.. Reason Choose... Launch Do not Launch Choose... Standard Decision Choose... Premium Choose... . . Reason Choose... > Choose... Choose... Negative Profit Positive Profit Negative contribution Positive contribution Lower Fixed Costs Higher Fixed Costs

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