Edge Equipment Co. manufactures and markets a number of rope products. Management is considering the...
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Edge Equipment Co. manufactures and markets a number of rope products. Management is considering the future of Product XT, a special rope for hang gliding, that has not been as profitable as planned. Since Product XT is manufactured and marketed independently of the other products, its total costs can be precisely measured. Next years plans call for a $170 selling price per 100 yards of XT rope. Its fixed costs for the year are expected to be $214,200, up to a maximum capacity of 550,000 yards of rope. Forecasted variable costs are $119 per 100 yards of XT rope
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