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Pirate Corporation is evaluating whether to discontinue one product line, Product A. Each month, they produce and sells 10,000 units of Product A. The selling
Pirate Corporation is evaluating whether to discontinue one product line, Product A. Each month, they produce and sells 10,000 units of Product A. The selling price Is $40 per unit, and variable costs are $32 per unit. Pirate Corporation incurs $120,000 in fixed costs each month, of which $50,000 would be avoidable if Product A was discontinued. If Product A is discontinued, the monthly financial advantage (disadvantage) for the company will be:
A-($30,000)
B-$30,000
C-($40,000)
D-$40,000
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