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ZapaKing Limited is a manufacturing company that makes three kinds of products. The company is undergoing financial difficulties and the management have decided to scrap
ZapaKing Limited is a manufacturing company that makes three kinds of products. The company is undergoing financial difficulties and the management have decided to scrap one of its product lines. The monthly manufacturing costs of 1,000 units for each of the product lines is given below. ZapaKing's selling prices for each of its products are: Product X= $97; Product Y= $91; Product Z= $87.50. Product X ($) Product Y ($) Product Z ($) Direct materials cost 50,000 40,000 35,000 Direct labor cost 20,000 25,000 30,000 Variable overhead 15,000 10,000 8,000 Fixed overhead 5,000 6,000 3,500. Discuss what product line should be scrapped from zappa king manufacturing lines
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