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Lusk Corporation produces and sells 15,900 units of Product X each month. The selling price...

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Accounting

Lusk Corporation produces and sells 15,900 units of Product X each month. The selling price of Product X is $29 per unit, and variable expenses are $23 per unit. A study has been made concerning whether Product X should be discontinued. The study shows that $71,000 of the $109,000 in monthly fixed expenses charged to Product X would not be avoidable even if the product was discontinued. If Product X is discontinued, the annual financial advantage (disadvantage) for the company of eliminating this product should be:

A) ($57,400)

B) $51,600

C) $13,600

D) ($51,600)

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