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Carla Vista Toys management is considering eliminating product A, which hass been showing a loss for several years. The company's annual income statement, is as

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Carla Vista Toys management is considering eliminating product A, which hass been showing a loss for several years. The company's annual income statement, is as follows: Advertising expense - Specific to each prodget: Depreciation expense - Specific fo eachproductins other whavailable no resale value. Corporate expenses : Allocated bowed bn number of einplovens What would be the effect on income if product A were dropped? Net income would eTextbook and Media Attempts: 0 of 3 used (C) Maragement is considering making a new product using product As equipment. If the new product's selling price per unit were $12, its variable costs were $7, and its advertising costs were the sarne as for product A. how many units of the new product would the company have to seli to make the switch from product A to the new aroduct worthwhile? Units

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