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Question 3: Maintain or Drop Lighthouse Stores has three product lines: Washer, Dryers and Freezers. The company furnished the following data for its most

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Question 3: Maintain or Drop Lighthouse Stores has three product lines: Washer, Dryers and Freezers. The company furnished the following data for its most recent year (in thousands): Washers Sales $900,000 Avoidable fixed expenses $100,000 Dryers $700,000 $80,000 Freezers $300,000 Total $1,900,000 $60,000 $240,000 Unavoidable fixed expenses, Allocated equally $100,000 $100,000 $100,000 $300,000 Variable expenses $500,000 $200,000 $400,000 $120,000 $200,000 $1,100,000 $(60,000) $260,000 Net income (loss) On the basis of the statement you have prepared, would you advise the elimination of the Freezers product line? Question 4: Maintain or Drop Patrick Limited currently manufactures three different types of cat litter. The following information Hlable with respect to the cat litter operation: 1111249 26C Mostl

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