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This is a management accounting question c. Kebokero company Ltd, produces three products for which the following data has been provided Product Sales Total costs

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This is a management accounting question

c. Kebokero company Ltd, produces three products for which the following data has been provided Product Sales Total costs Profit/loss Shs 250000 200000 50000 Shs 180000 200000 20000 Shs 150000 120000 30000 Total shs 580000 520000 60000 Total costs comprise 75% variable and 25% fixed. The directors of the company consider that product "Y" shows a loss and so it should be discontinued. Required Advice the management whether to drop production of product "Y" or not. (12 marks)

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