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Gonsalvez Company has three product A, B and C. The following information is available: $60 000 $38 000 $26 000 36 000 18 000 12
Gonsalvez Company has three product A, B and C. The following information is available: $60 000 $38 000 $26 000 36 000 18 000 12 000 24 000 20 000 14 000 12 000 15 000 16 000 $12 000 $5 000 $(2 000) Gonsalvez Company is thinking of dropping product line C because it is reporting an operating loss. Assuming fixed costs are avoidable, if Gomsalvez Company drops product line C and does not replace it, what effect will this have on profit? What will be the overall profit of the organisation. Show Calculations and provide your justification
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