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ACC - Clinton Company and other problem

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Question;Question 1:Clinton Company sells two items, product A and;product B. The company is considering dropping product B. It is expected that;sales of product A will increase by 40% as a result. Dropping product B will;allow the company to cancel its monthly equipment rental costing $100 per;month. The other existing equipment will be used for additional production of;product A. One employee earning $200 per month can be terminated if product B;production is dropped. Clinton's other fixed costs are allocated and will;continue regardless of the decision made. A condensed, budgeted monthly income;statement with both products follows;Product A;Product B;Total;Sales;$10,000;$8000;$18,000;Direct materials;2500;2000;4500;Direct labour;2000;1200;3200;Equipment rental;300;2600;2900;Other allocated overhead;1000;2100;3100;Operating profit;$4200;$100;$4300;Required;Prepare an incremental analysis to determine the;financial effect of dropping product B. Should the company drop Product B?Question 2:Read one recent (year 2000 onwards) online;available/accessible journal article on ?social, economic, and/or environmental;sustainability? and summarise it your own words (300-350 words). You must;provide a valid link to the article for the marker to access and review;(students responses will be randomly reviewed by the marker using the link provided;for accuracy and relevance). If the article could not be accessed by the marker;using the link you have provided, no marks will be awarded for this question.;="msonormal">

 

Paper#40573 | Written in 18-Jul-2015

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