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Which product should be recommended to be discontinued, 1,2,3 or 4? ...

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Accounting

Which product should be recommended to be discontinued, 1,2,3 or 4?

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As the accounting expert for a local firm of management consultants, you have been left with three scenarios to resolve for different clients. Scenario 2: Bromwich Ltd produces four products. The budgeted results suggest the following for next year Product Sales 80,000 76,000 35,000 19,000 Variable costs 62,000 28,000 37,500 11,000 Fixed costs 21,000 18,000 8,000 2,000 Profit/(Loss) (3,000) 30,000 (10,500) 6,000 The Managing Director is wondering whether or not to discontinue some of the product range. Which should be recommended to be discontinued

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