C93, Inc. sells three products. Income statement information for the three products for the most recent...

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C93, Inc. sells three products. Income statement information for the three products for the most recent year is given below: Selling price per unit Costs: Variable costs *** Advertising Rent Supervisor's salary Property taxes 1000 Product A $25 $140,000 $ 23,100 $ 12,100 $31,600 $ 7,000 Product B $20 7,000 $156,000 $ 26,500 $ 12,100 $ 32,400 $ 3,000 Product C $18 Units sold The rent is allocated to the three products equally and the property taxes are allocated based on the square footage each product uses in the factory. 13,000 $ 72,000 $ 20,800 $ 12,100 $ 34,300 $ 4,000 10,000 C93, Inc. is considering eliminating Product A. If Product A is eliminated, the space currently being used to produce Product A can be rented out for $17,800 per year. Calculate the number of units of Product A that would need to be sold next year in order for C93, Inc. to be economically indifferent between dropping and keeping Product A. C93, Inc. sells three products. Income statement information for the three products for the most recent year is given below: Selling price per unit Costs: Variable costs *** Advertising Rent Supervisor's salary Property taxes 1000 Product A $25 $140,000 $ 23,100 $ 12,100 $31,600 $ 7,000 Product B $20 7,000 $156,000 $ 26,500 $ 12,100 $ 32,400 $ 3,000 Product C $18 Units sold The rent is allocated to the three products equally and the property taxes are allocated based on the square footage each product uses in the factory. 13,000 $ 72,000 $ 20,800 $ 12,100 $ 34,300 $ 4,000 10,000 C93, Inc. is considering eliminating Product A. If Product A is eliminated, the space currently being used to produce Product A can be rented out for $17,800 per year. Calculate the number of units of Product A that would need to be sold next year in order for C93, Inc. to be economically indifferent between dropping and keeping Product A.

Answer rating: 100% (QA)

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