Loose Leaf For Managerial Accounting for Managers
Loose Leaf For Managerial Accounting for Managers
6th Edition
ISBN: 9781264445394
Author: Noreen, Eric, BREWER, Peter, Garrison, Ray
Publisher: McGraw Hill
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Chapter 6, Problem 6.7Q
To determine

Concept Introduction:

Dropping a Product line

When the overall profit of the business increases by dropping a product line, the business should drop a product line even if the product line is making a profit. A product line is also dropped when it is no longer required due to the technology change or change in the product requirement.

Explain the relevant and irrelevant cost of dropping a product line by Company P.

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