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4 . 4 The Baba Roots specializes in three primary product lines: Roast Breadfruit, Salt Fish, and Lemonade. Accounting data for the year 2 0
The Baba Roots specializes in three primary product lines: Roast Breadfruit, Salt Fish, and Lemonade. Accounting data for the year was summarized as follows The directors are considering to drop the Lemonade, given its net loss. The associated fixed costs would also be eliminated, Required: a Show by calculation whether it is financially prudent to drop the Lemonade b State three nonfinancial factors that should be considered before making a final decision?
The Baba Roots specializes in three primary product lines: Roast Breadfruit, Salt
Fish, and Lemonade.
Accounting data for the year was summarized as follows
The directors are considering to drop the Lemonade, given its net loss. The associated
fixed costs would also be eliminated,
Required:
a Show by calculation whether it is financially prudent to drop the Lemonade
b State three nonfinancial factors that should be considered before making a final
decision?
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