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Naylor Corporation produces multiple products. Financial information for Product A is included below. Product A Revenue $ 190,000 Variable expenses 45,000 Contribution margin 145,000 Traceable

Naylor Corporation produces multiple products. Financial information for Product A is included below.

Product A

Revenue

$ 190,000

Variable expenses

45,000

Contribution margin

145,000

Traceable fixed costs

70,000

Allocated common fixed costs

80,000

Net operating income

$ (5,000)

Based on this information, Product A should be discontinued.

True

False

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