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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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