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ABC Company has three product lines. Its only unprofitable line is Division A, the results of which appear below for 2020. Sales $350,000 Variable expenses
ABC Company has three product lines. Its only unprofitable line is Division A, the results of which appear below for 2020. Sales $350,000 Variable expenses 230,000 Fixed expenses 180,000 Net loss $(60,000) If Division A is eliminated, 30% of the fixed expenses can be eliminated. Calculate how much are the relevant costs in the decision to eliminate this product line and explain why the costs are relevant.
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