Dropping a Product Line

question 38

Essay

Dropping a product line.Timepiece Products,a clock manufacturer,operates at capacity.Constrained by machine time,the company decides to drop the most unprofitable of its three product lines.The accounting department came up with the following data from last year's operations:

Required:
Which line should Timepiece Products drop? (Hint: Compute the contribution per machine hour because machine time is the constraint. )
(Timepiece Products;dropping a product line. )

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Definitions:

Marketing Plan

A comprehensive document or blueprint that outlines a company's advertising and marketing efforts for a specific period, detailing strategies for reaching target audiences.

Geographic Location

The specific physical position of a place or entity on the Earth's surface, often considered in strategic planning or analysis.

Manufacturing And Operations

The processes involved in transforming raw materials into finished products and managing the system to ensure efficiency and productivity.

Proximity To Customers

The closeness of a business to its customers in terms of location, understanding their needs, and providing quick service.