(Solved):The management of Kabanuck Corporation is considering dropping product V41B. Data from the…

 

Question

The management of Kabanuck Corporation is considering dropping product V41B. Data from the company’s accounting system appear below:

Sales $937,000
Variable expenses $416,000
Fixed manufacturing expenses $351,000
Fixed selling and administrative expenses $258,000

All fixed expenses of the company are fully allocated to products in the company’s accounting system. Further investigation has revealed that $218,000 of the fixed manufacturing expenses and $129,000 of the fixed selling and administrative

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