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Lusk Corporation produces and sells 1 4 , 4 0 0 units of Product x each month. The selling price of Product x is $

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Lusk Corporation produces and sells 14,400 units of Product x each month. The selling price of Product x is $26 per unit, and variable expenses are $20 per
unit. A study has been made concerning whether Product x should be discontinued. The study shows that $72,000 of the $101,000 in monthly fixed
expenses charged to Product x would not be avoidable even if the product was discontinued. If Product x is discontinued, the monthly financial advantage
(disadvantage) for the company of eliminating this product should be:
Multiple Choice
($43,600)
$43,600
$14,600
($57,400)
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