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ABC Company is considering dropping product D14E. Data from the company's accounting system appear below: Sales $ 340,000 Variable expenses $ 156,000 Fixed manufac ng
ABC Company is considering dropping product D14E. Data from the company's accounting system appear below: Sales $ 340,000 Variable expenses $ 156,000 Fixed manufac ng expenses $ 116,00 Fixed selling and administrative expenses $ 75,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $72,000 of the fixed manufacturing expenses and $48,000 of the fixed selling and administrative expenses are avoidable if product D14E is discontinued. Keep the Product Drop the Product Difference $ $ $ Contribution margin Total fixed expenses $ ta Net operating income (loss)
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