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Shipment Company produces and sells 10000 units of product C each year. Each unit sells for $10 and has a variable cost of $4. The

Shipment Company produces and sells 10000 units of product C each year. Each unit sells for $10 and has a variable cost of $4. The controller estimates that eliminating production of Product C would save 80% of the $55000 in fixed costs identified with production of the product. If product C is eliminated, the overall net income of the company would show a: image text in transcribed
Jpe 800 000 10. Shipman Company produces and sells 10,000 units of Product C each year. Each unit sells for $10 and has variable costs of $4. The controller estimates that eliminating production of Product C would save 80% of the $55,000 in fixed costs identified with production of the product. If Product C is eliminated, the overall net income of the company would show a: a. $16,000 decrease b. $60,000 decrease c. $16,000 increase d. $60,000 increase None of these e. T2 000 002 o 000.00 00,082

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