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Lusk Corporation produces and sells 14,200 units of Product X each month. The selling price...

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Accounting

Lusk Corporation produces and sells 14,200 units of Product X each month. The selling price of Product X is $24 per unit, and variable expenses are $18 per unit. A study has been made concerning whether Product X should be discontinued. The study shows that $73,000 of the $103,000 in monthly fixed expenses charged to Product X would not be avoidable even if the product was discontinued. If Product X is discontinued, the monthly financial advantage (disadvantage) for the company of eliminating this product should be:
Multiple Choice
($55,200)
$17,800
$47,800
($47,800)

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