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Lusk Corporation produces and sells 1 4 , 7 0 0 units of Product x each month. The selling price of Product x is $

Lusk Corporation produces and sells 14,700 units of Product x each month. The selling price of Product x is $29 per unit, and variable expenses are $23 per unit. A study has been made concerning whether Product x should be discontinued. The study shows that $73,000 of the $102,000 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
$42,800
($42,800)
($59,200)
$13,800
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