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Done Project ACC 401 Spring 2020_790b8496ec8d5a02054dcafc15ab3ac2 Question 3: (total 6 marks: 3 marks for each alternative). The director of Sigma Corporation is considering dropping product
Done Project ACC 401 Spring 2020_790b8496ec8d5a02054dcafc15ab3ac2 Question 3: (total 6 marks: 3 marks for each alternative). The director of Sigma Corporation is considering dropping product B2A. Data from the company's accounting system for this product for last year appear below: Sales $830,000 Variable expenses $390,000 Fixed manufacturing expenses $266,000 Fixed selling and administrative expenses|$232,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $111.000 of the fixed manufacturing expenses and $103,000 of the fixed selling and administrative expenses are avoidable if product B2A is discontinued. Required : What would be the financial advantage (disadvantage) from dropping product B2A
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