A car manufacturer produces three different versions of their compact car: base model,premium,and super-deluxe.A simplified profit/loss statement for the plant is below.Corporate overhead (rent,general and administrative expense,etc. )is allocated equally among the three product versions.At the end of the quarter,company managers evaluate the profitability of each version to see if any should be discontinued.What would you recommend?

Question

Quizplus · Accepted Answer

The Answer of A car manufacturer produces three different versions of their compact car: base model,premium,and super-deluxe.A simplified profit/loss statement for the plant is below.Corporate overhead (rent,general and administrative expense,etc. )is allocated equally among the three product versions.At the end of the quarter,company managers evaluate the profitability of each version to see if any should be discontinued.What would you recommend?

A Car Manufacturer Produces Three Different Versions of Their Compact