Asus computers is considering eliminating model DE1 from its computer
accounting teacher (Not rated)
(Not rated)
| Asus computers is considering eliminating model DE1 from its computer line because of loses over the quarter. Past 3 months info is summerised: | ||||||
| Sales (1000 computers) $250 000 | ||||||
| Manufacturing costs: | ||||||
| Direct materials $140 000 | ||||||
| Direct labor ($15/h) $ 30 000 | ||||||
| Support $100 000 | ||||||
| Operating loss ($20 000) | ||||||
| Support costs are 70% variable and the remaining 30% is depreciation of equipment for model DE1 that has no resale value. | ||||||
| Should Asus eliminate model DE1 from its product line? Why or why not? | ||||||
10 years ago
Asus computers is considering eliminating model DE1 from its computer
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asus_computers.xls
