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Following are sales and other operating data for the three products made and sold by Ranger Company. In view of the net loss for Product
Following are sales and other operating data for the three products made and sold by Ranger Company. In view of the net loss for Product C. Ranger's management is considering dropping that product. All variable costs are direct costs and would be eliminated if Product C were dropped. Fixed costs are indirect costs: no fixed coots would be eliminated. Assume (bat the space used to produce Product C would be left idle. a. Would you recommend the elimination of Product C? Give supporting computations Net advantage (disadvantage of dropping product C By how much would the company's overall net income increase or decrease if Product C was eliminated? Give supporting computations
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