Determine the product margin for gamma

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Question - Forever Great Ltd has two products. Information about these products is as follows:

 

Alpha

Gamma

Units produced and sold

150

400

Selling price per unit

$400

$200

Variable expenses per unit

$260

$70

The company's fixed costs totalled $90,000, of which $30,000 can be avoided if Alpha is dropped and $40,000 can be avoided if Gamma is dropped.

Required - Determine the product margin for Gamma?

Reference no: EM133157556

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