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Kingbird Corporation has a division that manufactures children's and ladies' basketball shoes. If it eliminates manufacturing the ladies basketball shoes, $28,800 of fixed costs will
Kingbird Corporation has a division that manufactures children's and ladies' basketball shoes. If it eliminates manufacturing the ladies" basketball shoes, $28,800 of fixed costs will still remain. For the year, the ladies' basketball shoe line had sales of $301,000, variable costs of $227,000, and fixed expenses of $93,800. Prepare an analysis showing whether the company should eliminate the ladies' basketball shoe line.
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