Managers of Prestissimo Corporation Are Thinking About Eliminating One of Their

question 76

Multiple Choice

Managers of Prestissimo Corporation are thinking about eliminating one of their products,EasyGlo.EasyGlo sells for $8 per unit.Unit-related costs are $5,batch-related costs are $300 per batch,and 3 batches of EasyGlo have been required each month.Prestissimo spends $3,000 each month to advertise EasyGlo.Rent and insurance on the factory allocated to EasyGlo total $4,000.If Prestissimo is currently producing and selling 1,500 units of EasyGlo each month,what is the relevant profit for the product-elimination decision?

• A)$4,500
• B)$3,600
• C)$ 600
• D)($3,400)

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Definitions:

Designer Brands

Brands known for producing high quality, fashionable, and often luxury items designed by well-known fashion designers.

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