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A manufacturing company sells multiple products. It sells 30,000 units of its Product A each month. The selling price of Product A is $20 per
A manufacturing company sells multiple products. It sells 30,000 units of its Product A each month. The selling price of Product A is $20 per unit, and variable expenses are $16 per unit. A review shows that Product A should be discontinued. The study shows that $40,000 of the $270,000 in fixed expenses traced to Product A would not be avoidable even if product A was dropped. If Product A is dropped, the overall company would be better off or worst off by:
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