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Question 2 Brand New Inc. manufactures the multi - llavour product line that has three different products: orange, grape and cherry. In the current year,

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Question 2
Brand New Inc. manufactures the multi-llavour product line that has three different products: orange, grape and cherry. In the current year, the line had sales of $1,200,000, variable expenses of $930,000, and fixed expenses of $360,000. The product line had a net loss of $90,000. If Brand New eliminates the line, $60,000 of fixed costs will remain. Prepare an analysis showing whether the company should eliminate the multi-flavour line.
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