Asus computers is considering eliminating model DE1 from its computer line because of loses over
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Asus computers is considering eliminating model DE1 from its computer line because of loses over the quarter. Past 3 months info is summarized:
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?
11 years ago
Asus computers is considering eliminating model DE1 from its computer line because of loses over
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- asus_computers.xls