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Mr. Earl Pearl, accountant for Margie Knall Co., Inc., has prepared the following product-line income data: The following additional informartion is available: The factory rent
Mr. Earl Pearl, accountant for Margie Knall Co., Inc., has prepared the following product-line income data:
The following additional informartion is available: The factory rent of $1.800 assigned lo Product C is avoidable if the producs were dropped the company's total depreciation would not be affected by dropping C. Eliminating Product C will reduce the monthly utility bill from $1.800 to $350. All supervisors' salanes are avoidable If Product C is discontinued, the maintenance department will be able to reduce monthly expenses from 53.420 to $2.290 Elimination of Product C will make it possible to cut two persons from the administrative staff, their combined salaries total S3.060 Prepare an analysis for Product C. Should Product C be eliminated? Yes NoStep by Step Solution
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