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Question 10 Not yet answered Points out of 2.00 Nader Co. is currently producing a product that is selling poorly so it is considering whether
Question 10 Not yet answered Points out of 2.00 Nader Co. is currently producing a product that is selling poorly so it is considering whether to drop that product. The product has the following information: Sales 46908 units for an average price of $18.46 Variable costs $9.32 per unit Fixed manufacturing costs $456168 Fixed marketing costs $175487 P Flag question Dropping the product would allow Nader to avoid all marketing costs. 75% of fixed manufacturing costs on the other hand are unavoidable. Dropping the product would allow Nader to repurpose part of its factory to a different product which has high demand. Doing so would increase profits on that second product by $98829. What is the differential profit of dropping the product? (You can round to the dollar and the answer could be positive or negative.)
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