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Information from a company's accounting system regarding a product is as follows: The company is considering discontinuing the product and has gathered the following additional
Information from a company's accounting system regarding a product is as follows: The company is considering discontinuing the product and has gathered the following additional information. All fixed expenses of the company are fully allocated to products in the company's accounting system. If the product is discontinued, $202,000 of the fixed manufacturing expenses and $175,100 of the fixed selling and administrative expenses are avoidable. Required: Calculate the financial advantage (disadvantage) of dropping the product. Should it be dropped
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