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A decision on whether an item should be produced internally or purchased from an outside supplier is known as a

The potential benefit given up when one alternative is selected over another is

known as a$($n$).$

A cost that differs between alternatives in a particular decision. In managerial accounting, this term is synonymous with avoidable cost or differential cost:

Any cost that has already been incurred and cannot be changed by any decision made now or in the future: $-$

Any cost that can be eliminated $($in whole or in part$)$ by choosing one alternative over another in a decision$-$making situation. In managerial accounting, this term is synonymous with relevant cost or differential cost:

A study has been conducted to determine if Product A should be dropped. Sales of the product total $$200,000$ per year; variable expenses total $$140,000$ per year. Fixed expenses charged to the product total $$90,000$ per year. The company estimates that $$40,000$ of these fixed expenses will continue even if the product is dropped. If Product A is dropped, what will be the effect on the company's overall net income? Use a comparative income approach.

$\backslash$table$[[,$Keep,Remove,Difference$],[$Sales$,,,],[$Variable Expenses,,,$],[$Contribution Margin,,,$],[$Fixed Expenses,,,$],[$Net Income $($Net Loss$),,,]]$

Should the company drop the product line for Product A$?$ Briefly Explain.

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