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Kahn Corporation (a multi-product company) produces and sells 8,087 tote bags each year. Each tote bag sells for $10 and has a variable expense per
Kahn Corporation (a multi-product company) produces and sells 8,087 tote bags each year. Each tote bag sells for $10 and has a variable expense per unit of $6. If the tote bag product is discontinued, $50,000 of the $60,000 in annual fixed costs charged to the tote bag line could be eliminated. The annual financial advantage (disadvantage) for the company of eliminating this tote bag product should be: If a disadvantage, put a - sign in front of your number
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