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- A corporation produces and sells 10,000 units of computer mouse Model B each month. - The selling price of computer mouse Model B is
- A corporation produces and sells 10,000 units of computer mouse Model B each month. - The selling price of computer mouse Model B is $10 per unit (per mouse) - Variable expenses are $4 per unit. - A study has been made concerning whether the computer mouse Model B should be discontinued. - The study shows that $30,000 of the $100,000 in monthly fixed expenses charged to computer mouse Model B would not be avoidable even if the product was discontinued. If the computer mouse Model B is discontinued, the monthly financial advantage (disadvantage) for the company of eliminating this product should be in dollars. - Include the dollar amount and whether it is an advantage to discontinue or a disadvantage to discontinue. - Show your work on how you calculated your answer. If you do not show your work and only present the answer. you get zero credit
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