14 A study has been conducted to determine if Product A should be dropped. 5...
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14 A study has been conducted to determine if Product A should be dropped. 5 ales of the product total $200,000 per year, variable emenses totui 5140,000 per yoar: Fixed expenses charged to the protuct total 390,000 per year. The compary estimeren that 540,000 of thees fixnd expenses will continue even if the product is dropped. These data indicate that if Product A is dropped, the company's overall net operating income wait. Select one: a. decrease by $20,000 a year b. decrease by $10,000 a year c. increase by $20,000 a year d. increase by $10,000 a year e. none of the above If the net present value of a project is zero, then: Select one: a. the project is not acceptable b. the project is earning the minimum required rate of return c. the project will break-even d. the project will lose money e. none of these is correct
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