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Saved Help Save & Exit Subm ABC Co. is considering dropping product A and provided the following information. Sales $740, 000 Variable expenses $341, 000
Saved Help Save & Exit Subm ABC Co. is considering dropping product A and provided the following information. Sales $740, 000 Variable expenses $341, 000 Fixed manufacturing expenses $257, 000 Fixed administrative expenses $205, 000 if product A is discontinued, $199,500 of the fixed manufacturing expenses and $114,500 of the fixed administrative expenses can be avoided. Required: a. Calculate the net operating profit/loss earned/incurred by product A. b. Calculate the profit/loss of dropping product A. Indicate whether product A should be dropped. a. Net operating profit/loss Product A dropped b. Profit/loss
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