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profits have been decreasing for several years at albert co. and they are considering to drop the product xx. sales of product xx total $400,000;
profits have been decreasing for several years at albert co. and they are considering to drop the product xx. sales of product xx total $400,000; variable expenses total $420,000. fixed expenses charged to the product xx total $230,000. the company estimates that $200,000 of these fixed expenses are not avoidable even if the product is dropped. if product xx is dropped, what is the annual financial advantage or disadvantage for the company of eliminating this product xx.
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