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Question - The following information pertains to Ewing company's three products:
D
E
F
Unit sales per months
900
1,400
800
Selling price per unit
£6.00
£11.25
£7.50
Variable costs per unit
3.00
9.00
7.80
Unit contribution margin
£3.00
£2.25
£(0.30)
Assume that product F is discontinued and the space used to produce product F is rented for £600 per month. Calculate the Monthly profits?
A) increase by 840
b) decrease by £5,400
c) increase by £360
d) increase by £600
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