Lusk Corporation produces and sells 15,200 un is of Pioduct X each month. The selling...
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Lusk Corporation produces and sells 15,200 un is of Pioduct X each month. The selling price of Product X is $32 per unit and variable expenses are $26 per unit. A study has been made concerning whether Product X should be discontinued. The study shows that $72,000 of the $112,000 in monthly fired expenses charged to Product X wodld not be avoidoble even if the product was dacontinued. If Product X is discontinued, the monthly financiat advantage (disadvantage) for the company of eliminating this product should be: Muriple Chole $14.000 554800 (B5)200) (\$54.800)
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