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Kray incorporated, which produces a single product, has provided the following data for its most recent month of operations: There were no beginning or ending
Kray incorporated, which produces a single product, has provided the following data for its most recent month of operations: There were no beginning or ending inventories. The variable costing unit product cost was: Multiple Choice \$4 146 per unit $64 per unit $70 per unit 560 per unit The management of Furrow Corporation is considering dropping product LO7E. Data from the company's budget for the upcoming year appear below: In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $225,000 of the fixed manufocturing expenses and $186,000 of the fixed selling and administrative expenses are avoidable if product LO7E is discontinued. The financlal advantage (disadvantage) for the company of eliminating this product for the upcoming year would be: Muitiple Choice $96,000 5(96.000) $105,000 $(105,000)
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