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(Solved): pls help and get the right answer thanks. A company is considering dropping a product line. Data fr ...
pls help and get the right answer thanks.
A company is considering dropping a product line. Data from the company's budget for the upcoming year for this product line appear below: Further investigation has revealed that 45% of the fixed manufacturing costs and 34% of the fixed selling and administrative expenses are avoidable if the product were discontinued. What would be the total annual financial impact from eliminating this product? (Make sure to calculate the total impact, not the per-unit amount. Use a negative number to indicate a reduction in cash flows.)
To calculate the total annual financial impact of eliminating the product line, we need to determine the avoidable fixed costs and subtract them from the current total costs.