Managrail Accounting

After the combo washer-dryer has been in production for a few years, you are asked to perform another analysis. You must evaluate the performance of all three product lines as management is concerned with the viability of the washer-dryer combination product. They provide you with the latest annual information by product:

 High-End Set  Economical Set  W/D Combo Total
 Sales  $4,700,000    $4,060,000   $880,000    $9,640,000
 Labor  $(1,250,000)  $(1,015,000)  $(235,000)  $(2,500,000)
 Materials  $(1,885,000)  $(1,220,000)  $(315,000)  $(3,420,000)
 Direct fixed costs   $(325,000)  $(220,000)  $(250,000)  $(795,000)
 Allocated fixed costs   $(650,000)  $(650,000)  $(650,000)  $(1,950,000)
 Net Income   $590,000  $955,000  $(570,000)  $975,000

You are asked to perform an analysis to determine whether to drop or keep the washer-dryer combination product and present your findings, including the steps taken to make your determination. You are also asked to evaluate if the costing methodology is appropriate and, if not, recommend alternative methods.

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Accounting & Economics Assignment Help / Managerial Economics
29 Jul 2022

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