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Dropping a Product Line

Question 185

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Dropping a product line.Timepiece Products,a clock manufacturer,operates at capacity.Constrained by machine time,the company decides to drop the most unprofitable of its three product lines.The accounting department came up with the following data from last year's operations:
Dropping a product line.Timepiece Products,a clock manufacturer,operates at capacity.Constrained by machine time,the company decides to drop the most unprofitable of its three product lines.The accounting department came up with the following data from last year's operations:     Required: Which line should Timepiece Products drop? (Hint: Compute the contribution per machine hour because machine time is the constraint. ) (Timepiece Products;dropping a product line. )
Required:
Which line should Timepiece Products drop? (Hint: Compute the contribution per machine hour because machine time is the constraint. )
(Timepiece Products;dropping a product line. )

Correct Answer:

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blured image_TB2144_00 (a)$25 = $10/0.4 ho...

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