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ashly138 ashly138
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6 years ago
Hasselhoff Camera is considering eliminating Model EOS1 from its camera line because of losses over the past quarter. The past three months of information for model EOS1 is summarized below:

Sales (1,000 units)   $250,000
Manufacturing costs:
   Direct materials   90,000
   Direct labour ($15 per hour)   80,000
   Support   100,000
Operating loss   ($20,000)

Support costs are 70% variable and the remaining 30% is depreciation of special equipment for model EOS1 that has no resale value.

Should Hasselhoff Camera eliminate Model EOS1 from its product line? Why or why not?
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
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GarretAGarretA
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6 years ago
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Without mathematics, there's nothing you can do. Everything around you is mathematics. Everything around you is numbers.

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#2
4 years ago
thank you
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