Greetings,
I hereby submit this formal analysis bundled with detailed calculations regarding the low profitability of Product Gale and its overall effect on the company. Basing on my analysis, I have discovered that Axelrod Company is better off with Product Gale in its operations than without it. Find below the analysis and conclusion on the same:-
Total Income of all Products of Axelrod Company is as follows:
Calm Windy Gale Sales $ 750,000 600,000 146,250 Variable Production Costs: Direct Materials $ (250,000) (187,500) (56,250) Direct Labor (350,000) (262,500) (78,750) Fixed Overhead (90,000) (67,500) (13500) Net Income $ 60,000 $ 82,500 $ (2,250) ...
