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QUESTION 14 XYZ manufactures and sells a number of products, including Product G. Results for last year for the manufacture and sale of Product G
QUESTION 14 XYZ manufactures and sells a number of products, including Product G. Results for last year for the manufacture and sale of Product G are as follows: Sales $50,000 Less expenses: Variable costs Fixed costs Net operating loss $40,000 36,000 76,000 $(26,000) XYZ is trying to decide whether or not to discontinue Product G. Two thirds of fixed costs are avoidable if the product is dropped. Assume that dropping Product G will have no effect on other products. What is the financial advantage (disadvantage) of dropping Product G? O A. $40,000 financial advantage OB. $14,000 financial advantage o C. $26,000 financial advantage O D. $2,000 financial advantage
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