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LUMO. UN YUU NICU U Cull, Il Sdero Stay U Protected View Enable Editing s for Office are ready to be installed, but first we
LUMO. UN YUU NICU U Cull, Il Sdero Stay U Protected View Enable Editing s for Office are ready to be installed, but first we need to close some apps. Update now Question 2 125 Marks) Hockey Ltd manufactures a variety of field hockey equipment and is a 'one-stop-shop' for hockey equipment. After a poor financial performance in the last financial year, Hockey Ltd is considering making changes to two product lines, their own brand hockey stick and hockey shoes (a) Hockey Ltd is considering discontinuing hockey shoes due to the strong competition from shoe manufactures. Based on sales of 5,000 units in the previous financial year, this particular product generated a net loss. Data per unit for the shows is Selling price per unit $60 Variable costs per unit $51 An analysis of fixed costs reveal total fixed costs of $200.000, but $140,000 of this is unavoidable, and will be incurred regardless of whether the hockey shoes are discontinued or not, while another $60,000 of fixed costs are avoidable and will not be incurred if hockey shoe production is discontinued i. If hockey shoes are discontinued, will profit increase or decrease? What is the dollar value of this change? Show all workings (6 marks) Increase or decrease? Dollar value of change? Workings D Focus
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