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George Lucas Corporation manufactures and sells a number of products, including a product called Tatooine. Results for last year for the manufacture and sale of

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George Lucas Corporation manufactures and sells a number of products, including a product called Tatooine. Results for last year for the manufacture and sale of Tatooines are as follows: $ 960,000 Sales Los expenses Variable production costs Sales commissions Salary of product manager Fixed product advertising Fixed manufacturing overhead Bet operating loss 5464,000 144,000 100,000 160,000 132,000 1,000,000 $ 140,000) George Lucas is trying to decide whether to discontinue the manufacture and sale of Tatooines. All expenses other than food manufacturing overhead are avoidable if the product is dropped. None of the fixed manufacturing overhead is avoidable Assume that dropping Product Tatoone will have no effect on other products. The annual financial advantage (disadvantage) for the company of eliminating this product should be: O ($132,000) O ($172,000) O $40,000 O $92,000 ($92,000)

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