IMA CMA Part 2: Strategic Financial Management Exam CMA-Strategic-Financial-Management Question # 8 Topic 1 Discussion

IMA CMA Part 2: Strategic Financial Management Exam CMA-Strategic-Financial-Management Question # 8 Topic 1 Discussion

CMA-Strategic-Financial-Management Exam Topic 1 Question 8 Discussion:
Question #: 8
Topic #: 1

London Corporation has in the following cost structure for two of its product.

CMA-Strategic-Financial-Management Question 8

Assume that me current sales level is 15,000 units of Product A and 5,000 units of Product B Using

cost-volume-profit analysis which of the following courses of action would maximize profit in the short term? Assume that fixed costs are sunk costs in the short term.


A.

Continue to make and sell Product A only.


B.

Continue to make and sell Product B only


C.

Continue to make and sell both Product A and Product B


D.

Discontinue making and selling Doth products


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