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A firm is thinking about dropping the product line "AA". AA currently shows a loss of $280,000. The contribution margin for the product line is $300,000. Total fixed expenses are $580,000 of which 310,000 is unavoidable and $270,000 is avoidable. How much better off or worse off will the firm be if they keep product AA? O Worse off by keeping AA by S30,000 O Better off by keeping AA by $30,000 O Worse off by keeping AA by $10,000 O Better off by keeping AA by $10,000 LG Co. makes 2,000 parts a month, which are used in the production of one of its products. The unit cost of the parts is shown below: Variable product costs $40 Fixed product costs S25 Total S65 The part can be purchased from an outside supplier at $54 per unit. The company estimates that 60% of the $25 fixed product costs remain unchanged no matter if the parts are purchased or not. However, if the parts are purchased, the company can rent out the freed facilities for $18,000 a month. Based on these data, what is the financial advantage or disadvantage of purchasing the part from the outside supplier? O $4 financial disadvantage per unit O $5 financial disadvantage per unit O $4 financial advantage per unit O S5 financial advantage per unit Erica Co. has two signature products: A and B. Because of a recent shortage of raw materials, the company has to decide the optimal amount of units to produce for each product. Information related to t below: two products are shown $54 545 Selling price per unit Variable cost per unit $30 S25 8 5 Raw materials (in pounds) Maximum monthly demand (in units) 600 600 Assume that Erica Co. only has 6,000 pounds of raw materials available next month. To maximize its contribution margin, how many units of A and how many units of B should the company produce next month? 375 units of A and 600 units of B O 600 units of A and 240 units of B O 600 units of A and 600 units of B O 500 units of A and 200 units of B