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TB MC Qu. 11-64 The management of Furrow Corporation ... The manogement of furrow Corporation is considering dropping product Lo7e, Data from the company's budget

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TB MC Qu. 11-64 The management of Furrow Corporation ... The manogement of furrow Corporation is considering dropping product Lo7e, Data from the company's budget tor the upcoming year appear below: In the compary/s occounting system al foed expenses of the company we fuly allocated to products. Further investgation has revealed that $221000 of the fixed manufacturing expenses and $182,000 of the foed seling and adminstrative expenses are avoidable if product Love is discontinued. The fenaxial advantage (fisadvantage) for the company of eliminating this product tor the upcoming year would be: Multiple Choice $(20,000) $(185,000) $185.000 $20.000

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