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If you drop product A in the long term, fixed costs will: Oremain the same Odecrease by $5,400 profit will: Odecrease by $1,800 Oincrease by

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If you drop product A in the long term, fixed costs will: Oremain the same Odecrease by $5,400 profit will: Odecrease by $1,800 Oincrease by $3,600 e) Allocate the fixed costs between products A and B, using the number of units as the cost driver. allocation rate-$ allocated costs for A-$ allocated costs for B-$ per unit These allocated amounts are very different from what you got in part (a). In general, should we use the a D use the allocated costs from (a) direct labor is always a better cost driver than the number of units use the allocated costs from (e) the number of units is always a better cost driver than direct labor O it depends-- direct labor can be a better cost driver in some situations, and the number of units (or some other ac f) Suppose that a firm uses a labor-intensive production process. The most reasonable cost driver for manu f number of units machine hours o direct labor (measured in hours or dollars) Suppose that a firm uses a machine-intensive production process. The most reasonable cost driver for manu

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