Top managers of Computer Manufacturing are alarmed by their operating losses.They are considering dropping the desktop product line.The company accountants have prepared the following analysis to help make this decision.
Total fixed manufacturing costs will not change if the company stops selling the desktop product line.The fixed selling and administrative costs,however,will be avoided.
Prepare a differential analysis to show whether Computer Manufacturing should drop the desktop product line.Should the desktop product line be dropped? Explain your answer.
Definitions:
Landrum-Griffin Act
A US federal law enacted in 1959 to regulate labor unions' internal affairs and their officials' relationships with employers.
NLRB
The National Labor Relations Board, a U.S. federal agency responsible for enforcing U.S. labor law in relation to collective bargaining and unfair labor practices.
Political Influence
The power to affect governmental actions, policies, or decisions, often exercised through lobbying or electoral activities.
Public Sector Unionization
The process or state of workers in government and public services organizing into unions to negotiate terms of employment, such as wages and conditions.
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