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URGENT! Demand of individual products is not affected by changes in other product lines. Direct fixed costs are costs associated with the specifie product line.

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URGENT!
Demand of individual products is not affected by changes in other product lines. Direct fixed costs are costs associated with the specifie product line. They will be eliminated if a product line is discontinued. The common fixed costs are allocated based on revenue and will be incurred regardless of how many product lines are carried. Required: a) Prepare an incremental analysis of the effect of dropping the DVDs product line. Should DVDs be dropped? (7 marks)

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