Chapter 13, Problem 8F15

To determine

Discontinue the product:

If the company’s product line sales volume goes down year by year or variable expenses increased year

by year makes the product not to sales for profit or company didn’t having ability to survive against its

competitors, on that time company’s management wants to discontinue the product line by selling it or decided to stop it.

XYZ company has financial advantage or disadvantage to discontinue the 2nd product line.