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ACC00146 Management Accounting Solved

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The table above indicates the contribution per unit of different products of the company. It can be said that the company should not produce Towel as the contribution is negative and the company will make loss if the company engages in the production.

The figure above shows that the company has maintained high cash flow throughout the period. It can be seen that the cash position of the business have slowly increased and have been maintained at high level. The main reason for such increase in cash balance is increased sales and controlled expenditure (Dudin et al. 2015).The figure above shows the manufacturing industry is showing a decline of 1.7% in growth.  It is expected that the manufacturing industry will see a decline of 0.7% from 2012 to 2017. However, the revenue of the industry is expected to increase by 1.7%. Therefore, it is expected that the business will make profit so the company should continue in the manufacturing but should stop producing towel, as it is not profitable (Gebreiter, 2016).

Based on the above discussion it can be said that it is expected that the company should make profit and will be able to maintain good cash position. However, the business should producing towel, as it is not profitable.

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