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Oriole Company has three product lines. Its only unprofitable line is Corn Nuts, the results of which appear below for 2013: Sales $1430000 Variable expenses
Oriole Company has three product lines. Its only unprofitable line is Corn Nuts, the results of which appear below for 2013:
Sales | $1430000 |
Variable expenses | 940000 |
Fixed expenses | 600000 |
Net loss | $ (110000) |
If this product line is eliminated, 30% of the fixed expenses can be eliminated. How much are the relevant costs in the decision to eliminate this product line?
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