Furniture shop company manufacturers three types of computer desks. The income statement for the three...
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Accounting
Furniture shop company manufacturers three types of computer desks. The income statement for the three products and the whole company is shown below. The company produces 1000 units of each product. The company's capacity is 9000 labour hours. The labour for each product is 4 hours for Product A, three hours for Product B, and two hours for Product C. Fixed costs are allocated based on labour hours. Required 1. If the current production levels are maintained should the company eliminate product C? Explain your reasoning and show your calculations
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