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The management of Furrow Corporation is considering dropping product Lo7E. Data from the company's budget for the upcoming year appear belowi In the company's accounting
The management of Furrow Corporation is considering dropping product Lo7E. Data from the company's budget for the upcoming year appear belowi In the company's accounting system atl fixed expenses of the company are fully allocated to products. Further investigation has revealed that $247000 of the foxed manufacturing expenses and $208,000 of the fixed selling and administrative expenses are avoldable if product Loze is discontinued, The financial advantage (disadvantage) for the company of eliminating this peoduct for the upcoming year would be: Muriple Chaice 50400000 5000001 5140.000 Multiple Choice $(140,000) $(39,000) $140,000 $39,000
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