=+It is estimated that 16% of the cost of goods sold represents fixed factory overhead costs and

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=+It is estimated that 16% of the cost of goods sold represents fixed factory overhead costs and that 20% of the operating expenses are fixed. Since Royal Cola is only one of many products, the fixed costs will not be materially affected if the product is discontinued.

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Accounting

ISBN: 978-1111001346

23rd Edition

Authors: Carl S. Warren

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