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Fritz Furniture currently manufactures two unprofitable products: a couch and a chair. Yearly financial data related to the two products is as follows: Couch Sales
Fritz Furniture currently manufactures two unprofitable products: a couch and a chair. Yearly financial data related to the two products is as follows: Couch Sales $240,000 Chair $174,000 Variable expenses Fixed expenses 85,000 190,000 57,000 138,000 If eliminating the couch will reduce the fixed expenses associated with that product by 70% and eliminating the chair will reduce the fixed expenses associated with that product by 60%, then Fritz should discontinue the couch. Fritz should discontinue the chair. Fritz should discontinue both products. Fritz shouldn't discontinue either product
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