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Along with other fitness products, Power Pulse manufactures and sells a wearable fitness tracking device called the Fit Flop. Sales or the Fit Flop have
Along with other fitness products, Power Pulse manufactures and sells a wearable fitness tracking device called the "Fit Flop." Sales or the Fit Flop have been declining, and the management at Power Pulse have been considering whether they should drop the Fit Flop product line. The Power Pulse cost accountants have compiled the following information about the Fit Flop product line: Management has determined that $196,000 of the fixed manufacturing expenses and $169,900 of the fixed selling and administrative expenses are avoidable if the Flip Flop product line is discontinued. Required: What would be the financial advantage (disadvantage) of dropping the Fit Flop product line? Should the product be dropped
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