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Delta Aluminum's management is considering eliminating product B, which has been showing a loss for several years. The company's annual income statement is as follows
Delta Aluminum's management is considering eliminating product B, which has been showing a loss for several years. The company's annual income statement is as follows Advertising expense - Specific to each product. Depreciation expense - Specific to each product: no other use available, no resale value Corporate expenses - Allocated based on number of employees. Management is considering making a new product using product B's equipment. If the new product's selling price per unit were exist11, its variable costs were exist4, and its advertising costs were the same as for product B, how many units of the new product would the company have to sell to make the switch from product B to the new product worthwhile
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