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Sunrise Enterprises currently manufactures two unprofitable products. Yearly financial data related to the two products is as follows: The illustration is a table that lists
Sunrise Enterprises currently manufactures two unprofitable products. Yearly financial data related to the two products is as follows: The illustration is a table that lists financial data related to two products. The table consists of three columns and three rows. The first column lists the elements: Sales, Variable expenses, and Fixed expenses. The second column has a header of Product A and lists the respective amounts for each of the elements in column one. The third column has a header of Product B and lists the respective amounts for each of the elements in column one. Product A has Sales of $89,000, Variable expenses of 33,000 and Fixed expenses of 61,000. Product B has Sales of $105,000, Variable expenses of 40,000 and Fixed expenses of 82,000. For various reasons, Sunrise can only discontinue one product line in the year ahead. If the elimination of either product will reduce the fixed expenses associated with that product by 80%, then Sunrise should opt to discontinue the production of Select answer from the options below Product B both Products A and B Product A neither Product A or B
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