Advertisement

Product Profitability at Merrydale Limited

  • Andrew M. McCosh
  • Michael J. Earl

Abstract

This case explores the use of accounting information in decision-making. As the title implies, the case addresses the product-range decision: how to decide which products to drop from a product-line when the company (Merrydale) is making losses. Primarily it is an exercise in relevant costs and the contribution approach to decision-making. However other issues are also raised, for example the need for costing systems and questions of strategy.

Keywords

Marginal Cost Product Profitability Full Cost Unit Contribution Unit Profit 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Further Reading

  1. 1.
    For product-market strategy see: Ansoff, I., Corporate Strategy (Penguin Books, 1968).Google Scholar
  2. 2.
    For linear programming see: Haley, K.B., Mathematical Programming for Business and Industry (Macmillan, 1967).Google Scholar
  3. 3.
    For management information design for operational, management and strategic decisions see: McCosh, A.M., Rahman, M. and Earl, M.J., Managing Information (Macmillan, forthcoming)Google Scholar

Copyright information

© Andrew M. McCosh and Michael J. Earl 1979

Authors and Affiliations

  • Andrew M. McCosh
    • 1
  • Michael J. Earl
    • 2
  1. 1.Manchester Business SchoolUK
  2. 2.Oxford Centre for Management StudiesUK

Personalised recommendations