Top Managers of Computer Manufacturing Are Alarmed by Their Operating

question 4

Essay

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.

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Definitions:

Species-specific Behaviors

Behaviors that are unique to a particular species, often instinctual, and serve to enhance survival and reproductive success.

Eye Blink

A rapid closing and opening of the eyelid, which is an automatic response to protect the eye from threats or to moisten it.

Insulin

A hormone produced by the pancreas that regulates the amount of glucose in the blood, essential for the body to use glucose for energy.

Blood Sugar

The concentration of glucose present in the blood, critical for bodily function and closely regulated by various hormones.