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Business, 07.07.2019 01:10 alanihuling

Lusk corporation produces and sells 16,000 units of product x each month. the selling price of product x is $30 per unit, and variable expenses are $24 per unit. a study has been made concerning whether product x should be discontinued. the study shows that $70,000 of the $110,000 in monthly fixed expenses charged to product x would not be avoidable even if the product was discontinued. if product x is discontinued, the annual financial advantage (disadvantage) for the company of eliminating this product should be:

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