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Burger Emporium Inc. is currently losing $100.000 per year on its Zhou Burger product line. The revenue from the Zhou Burger is $500,000 per year.

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Burger Emporium Inc. is currently losing $100.000 per year on its Zhou Burger product line. The revenue from the Zhou Burger is $500,000 per year. The related variable costs are $300,000 and the fixed costs specific to the Zhou Burger operation are $300,000 per year. Burger Emporium Inc. is deciding whether or not they should drop their Zhou Burger line. They suspect $240,000 of the fixed costs will be avoidable if they drop the line. Assuming there are no opportunity costs, what should they do from a financial perspective? None of the other answers are correct. Keep the product line, because they would lose an additional $200,000 if they drop it. Drop the product line, because they will save $40,000. Drop the product line, because they will save $100,000. Keep the product line, because they would lose an additional $40,000 if they drop it

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