Hilton Manufacturing Company

Hilton Manufacturing Company Should Product 103 have been dropped? (3 ways to see)

Lost sales ($5,202)

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• Cost savings DL $1,341
• Compensation insurance 67 DM 946
• Power 59 Supplies 68 2,501
• Repairs 20 Lost CM: total impact of dropping ($2,701)

Loss eliminated

• Costs that remain Rent Property tax Property insurance Indirect labor Compensation ins.
• Light and heat
• Building service
• Selling expense General admin Depreciation Interest Other income Total impact
• $404 $365 78 103 448 21 20 14 917 346 713 102 (10) 3,117 (2,703) nit CM (see later)

Total impact

lost CM = 5. 3909 x 510,276 = $2,702

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