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pduvin pduvin
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6 years ago
Hackerott Camera is considering eliminating Model AE1 from its camera line because of losses over the past quarter. The past three months of information for model AE1 is summarized below:

Sales (1,000 units)   $250,000
Manufacturing costs:
   Direct materials   140,000
   Direct labour ($15 per hour)   30,000
   Support   100,000
Operating loss   ($20,000)

Support costs are 70% variable and the remaining 30% is depreciation of special equipment for model AE1 that has no resale value.

Should Hackerott Camera eliminate Model AE1 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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btpsandbtpsand
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6 years ago
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#2
4 years ago
thank you
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#3
4 years ago
thanks
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