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Management Accounting
Willie Seal, University of Essex, UK
Ray Garrison, Brigham Young University, Provo, Utah, USA
Eric Noreen, INSEAD, France
Standard Costs and Variance Analysis

Internet Exercises

www: IE13-30 Altering the Product Mix Maxager Technology, Inc., provides manufacturers with software that calculates minute by minute how much more profit could be made by adjusting their product mix and by solving specific production problems. Access the company's web site at www.maxager.com and read about Cast Alloy's experience with the software in the section on Successes.

1.      Why would a company change its product mix rather than just produce and sell more of everything?

2.      How does the Maxager Technology's software probably determine how to change the product mix to generate more profits?

3.      How does the software probably determine how much profit could be made by solving specific production problems?







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