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Business, 08.10.2019 17:30 stephanieyingepbtcf8

Astudy has been conducted to determine if product a should be dropped. sales of the product total $500,000; variable expenses total $340,000. fixed expenses charged to the product total $210,000. the company estimates that $60,000 of these fixed expenses are not avoidable even if the product is dropped. if product a is dropped, the annual financial advantage (disadvantage) for the company of eliminating this product should be:

(a) ($10,000)
(b) $10,000
(c) ($50,000)

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