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1 Lusk Corporation produces and sells 13,900 units of Product X each month. The selling price of Product X is $21 per unit, and variable
1 Lusk Corporation produces and sells 13,900 units of Product X each month. The selling price of Product X is $21 per unit, and variable expenses are $15 per unit. A study has been made concerning whether Product X should be discontinued. The study shows that $74,000 of the $104,000 in monthly fixed expenses charged to Product X would not be avoidable even if the product was discontinued. If Product X is discontinued, the monthly financial advantage (disadvantage) for the company of eliminating this product should be: Multiple Choice ($53,400) $20,600 $50,600
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