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ABC Company sells three products. Income statements for the three products for the most recent year appear below: Product A Product B Product C $145,000
ABC Company sells three products. Income statements for the three products for the most recent year appear below: Product A Product B Product C $145,000 Sales revenue $120,000 $180,000 Costs: Variable costs 78,000 12,000 10,000 25,000 10,000 54,000 87,000 8,000 10,000 30,000 2,000 8,000 Advertising 7,000 10,000 35,000 6,000 68,000 Rent Supervisor's salary Property taxes Net income/loss The rent is allocated to the three products equally and the property taxes are allocated based on the square footage each product uses in the factory. If ABC The president of the company is considering eliminating Product A. Company eliminates Product A, sales of Product B are expected to increase by $10,000. Calculate the increase in company profits if Product A is dropped
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