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Oak Canon produces and sells 13,900 units of Product X each month. The selling price of Product X is $21 per unit, and variable expenses are $15 per unit. A study has been made concem whether out X should be discontinued. The study shows that $74,000 of the $104,000 in monthly fixed expenses charged to Product X would not be avoidable even if the product was discontinue Product decontinued, the monthly financial advantage (disadvantage) for the company of eliminating this product should be: 0 ($53,4))) $50.600 $20.800 O($50,600)

Oak Canon produces and sells 13,900 units of Product X each month. The selling price of Product X is $21 per unit, and variable expenses are $15 per unit. A study has been made concem whether out X should be discontinued. The study shows that $74,000 of the $104,000 in monthly fixed expenses charged to Product X would not be avoidable even if the product was discontinue Product decontinued, the monthly financial advantage (disadvantage) for the company of eliminating this product should be: 0 ($53,4))) $50.600 $20.800 O($50,600)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Oak Coronation produces and sells 13,900 units of Product X each month. The selling price of Product X is $21 per unit, and variable expenses are $15 per unit. A study has been made concerning whether actX should be discontinued. The study shows that $74,000 of the $104,000 in monthly fixed expenses charged to Product X would not be avoidable even if the product was discontinuem Product decontinued, the monthly financial advantage (disadvantage) for the company of eliminating this product should be: O (85340) $50.600 $20.600 O($50,800)
Transcribed Image Text:Oak Coronation produces and sells 13,900 units of Product X each month. The selling price of Product X is $21 per unit, and variable expenses are $15 per unit. A study has been made concerning whether actX should be discontinued. The study shows that $74,000 of the $104,000 in monthly fixed expenses charged to Product X would not be avoidable even if the product was discontinuem Product decontinued, the monthly financial advantage (disadvantage) for the company of eliminating this product should be: O (85340) $50.600 $20.600 O($50,800)
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