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just answer the questions Fitness Sports Equipment manufactures round, rectangular and octagonal trampolines Management is concerned about the continued losses shown by the round trampolines
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Fitness Sports Equipment manufactures round, rectangular and octagonal trampolines Management is concerned about the continued losses shown by the round trampolines and wants a recommendation as to whether or not the line should be discontinued. The special equipment used to produce the round trampolines has no resale value of the round trampoline model is dropped, the two managers assigned to the model will be let go 1. What type of costs need to be taken into consideration in the decision to drop the round trampoline model? Explain 2. Why would management choose to keep an unprofitable product line? 3. Based on the financial considerations should the production and sale of the round trampolines be discontinued? The company has no other use for the capacity now being used to produce the round trampolines? Explain your answer and your reasons Step by Step Solution
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