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Unformatted text preview: television showroom space. It is believed that television sales will increase by 40%. Fixed expenses that can be avoided by abandoning appliance sales include the salary of a service tech and the elimination of a delivery van. The two components total $10,000 per month. The remaining fixed costs relate to facilities expenses and employees that will be diverted to television sales activities. Evaluate the impact on total profitability of exiting appliance sales. How can overall profits be negatively impacted by abandoning an "unprofitable" product line?...
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This note was uploaded on 02/29/2012 for the course ACCOUNTING 101 taught by Professor Hudack during the Spring '11 term at FIU.
- Spring '11