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The management of Woznick Corporation has been concerned for some time with the financial performance of its product V 8 6 O and has considered
The management of Woznick Corporation has been concerned for some time with the financial performance of its product VO and has considered discontinuing it on several occasions. Data from the company's accounting system for this product for last year appear below:
Sales
$
Variable expenses
Fixed manufacturing expenses
Fixed selling and administrative expenses
$
$
$
In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $ of the fixed manufacturing expenses and $ of the fixed selling and administrative expenses are avoidable if product VO is discontinued.
What would be the financial advantage disadvantage from dropping product VO
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