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Micro Corp is deciding whether or not to eliminate one of its products, Product A....

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Accounting

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Micro Corp is deciding whether or not to eliminate one of its products, Product A. Sales of the product total $500,000; variable expenses total $325,000. Fixed expenses charged to the product total $245,000. The company estimates that $60,000 of the fixed expenses are not avoidable even if the product is dropped. If Product A is dropped, the annual financial advantage (disadvantage) for the company of eliminating this product should be: a. ($60,000) b. $70,000 C. ($10,000) O d. $10,000

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