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Business, 07.05.2021 23:10 Tyrant4life

Cube Manufacturing produces three different products: Platinum, Gold, and Silver. The financial statement from last quarter is shown below. Platinum Gold Silver Total Sales $ 500,000 $ 400,000 $ 200,000 $1,100,000 Variable costs (350,000) (300,000) (160,000) (810,000) Contribution margin 150,000 100,000 40,000 290,000 Fixed costs (80,000) (60,000) (50,000) (190,000) Operating profit (loss) $ 70,000 $ 40,000 $(10,000) $ 100,000 The general manager is thinking of eliminating the Silver product line to improve the financial results. The cost accountant cautions that the fixed costs allocated to Silver have to be absorbed by the remaining two products if the decision is finalized. Required: What should the general manager of Cube Manufacturing do and why

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Cube Manufacturing produces three different products: Platinum, Gold, and Silver. The financial stat...
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