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Susan is a managerial accountant for Bay City tires, Inc. Bay City manufactures tires for passenger automobiles at a plant on the outskirts of town. They also produce tires for commercial equipment at a dockside facility on Lake Michigan. Due to the recent downturn in the economy, Bay city has lost sales and been forced to reduce prices.
Problem 1: Is the plant manager's assessment of the effects of increased production on the contribution margin correct? Why, or why not?
Problem 2: Are the manager's actions ethical? Are they legal? Explain your answer and use at least one credible source to support your justification.
Problem 3: Should Susan present the manager's proposal to the Board of Directors? Why or why not?
In this discussion post, respond to the following: What activities would the company need to perform that are not required for its current product lines
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