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Effler Company makes and sells a variety of products. Results from last year from the sale of one of these products is given below: ..
Effler Company makes and sells a variety of products. Results from last year from the sale of one of these products is given below: .. $200,000 $104,000 Sales revenue (8,000 units sold) Variable costs Fixed costs: Advertising ... Allocated overhead Salary of product supervisor Net loss .. $ 28,000 $ 33,000 $ 61,000 $ 26,000> Due to recurring losses, Effler Company is considering eliminating this product. The company has determined that if this product is discontinued, the contribution margin of its other products will increase by $16,000. Calculate the number of units of this product that would need to be sold next year in order for Effler Company to be economically indifferent between dropping and keeping the product
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