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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:
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