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ABC Company sells three products. Income statements for the three products for the mostrecent year appear below:
Product A Product B Product C Sales revenue ...................... $120,000 $180,000 $145,000 Costs: Variable costs ................. 78,000 54,000 87,000 Advertising .................... 10,000 7,000 8,000 Rent ........................... 10,000 10,000 10,000 Supervisor's salary ............ 25,000 35,000 30,000 Property taxes ................. 12,000 6,000 2,000 Net income/loss ..................... <15,000> 68,000 8,000The rent is allocated to the three products equally and the property taxes are allocatedbased on the square footage each product uses in the factory.The president of the company is considering eliminating Product A.Calculate the decrease in company profits if Product A is dropped. Do not use decimals ortype the word decrease after your answer. Additionally, do not enter your answer with aminus sign in front of the number.
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inia
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inia
ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing eUnlock full access to Course Hero
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